Recently, the South African Minister of Finance— Tito Mboweni, has made it known that a regulatory working group dedicated to cryptocurrencies has been created by the government authority. According to the letter sent by the minister to the parliament, the crypto working group is made up of several influential public and private agencies. As a result of this, a more comprehensive regulatory framework will be conceived.
Massive Crypto Audience
South African boast of one of the most significant crypto economy in Africa. For this reason, the country is in need of a proper regulatory framework to ensure stability and also promote a safer crypto industry.
Late last year, the popular UK based cryptocurrency wallet—Luno conducted some research regarding document the level of significance cryptocurrency has attained in South Africa. According to the research, it was discovered that 70 percent of South African consumers are of the notion that buying cryptos is a form of investment. Many of those who took part in the survey conducted by Luno also made it know that they are holding one form of crypto for the long run.
Paxful, a peer-to-peer exchange has also made it known that it saw an increase in transactions originating from South Africa in 2018. According to a recent report from Paxful, a 25 percent increase was recorded last year. Another peer-to-peer exchange Localbitcoins has also recorded high volumes from the region.
In response to this rise in the usage of crypt of by South African, the government of the country, along with members of the SA Revenue Service (Sars), South Africa Reserve Bank, Treasury, Financial Sector Conduct Authority, and Financial Intelligence Centre went ahead to form a crypto working group.
The Function of the Crypto Working Group
According to letter sent to the parliament by the Minister of Finance, the working group will help the government understand cryptocurrency and blockchain technology. Through that, the government a reasonable and flexible regulatory framework will be put in place.
The minister in his letter also stated that:
“It is anticipated that, following broad industry comment and participation, the crypto assets regulatory working group will be ready to release a final research paper on the subject during the course of 2019,”