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Cryptocurrency Regulation Deficiencies stalling South Africa’s Crypto Adoption

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According to the recently published report, The Financial Action Trust Force has indicated that there are substantial issues in the regulation of Cryptocurrency in South Africa.

The report stressed the major inadequacies in the country’s Cryptocurrency Regulation, stating further that there are no based measures taken as the Crypto Asset Service Providers (CASP’s)

The country is expected to take necessary precautions and mend the lapses highlighted in the report. The regulation should be remedied within 18 months.

One of the major problems stated was that the Crypto Asset Service Providers CASP’s were not required to take any anti-money laundering or counter-terrorist financing steps and also were not supervised nor licensed and registered.

About the report, South Africans believe they have found the problem and are therefore working towards a solution which they have started already, only they are yet to put into consideration the risk measures.

“The government is fully committed to implementing the recommendation contained in the report, and strengthening the entire system for investigating financial crimes, including the fight against corruption,” the National Treasury and the Financial Intelligence Centre (FIC) shared.

National Treasury will report regularly to the cabinet on the country’s progress. The continuous strengthening of the country’s AML/CFT/CFP [Counter Financing of Proliferation] system via central to protecting vans helping to make the financial system intolerant to abuse.

With the country bearing the forgone occurrences, the world’s largest Cryptocurrency exchange platform, Binance, have declared that it had restricted South African users from derivative trading services which include options, futures, margin and leveraged tokens.

It is important to note that the South African Reserve Bank (SARB)  just recently made it a bit more difficult for South Africans to use Binance by blocking credit band debit cards purchases of cryptocurrency.

Earlier this year the South Africa Reserve Bank has issued a declaration stating that sending cryptocurrency from South Africa to offshore exchanges and wallets is a criminal offence.

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Data Scientist, Tech Enthusiast and a Crypto Lover