An important South African financial enterprise has announced that will invest in the release of a cryptocurrency trading platform, according to BusinessTech.
The crypto exchange will be released in Q3 of 2018
Sygnia Asset Management, a giant investment firm with a $ 14.5 billion bid, will release its own crypto exchange this year. The announcement was made on 25th May. Magda Wierzycka, CEO of Sygnia, revealed that the new platform will be dubbed as “SygniaCoin” and will be released in Q3 of 2018.
“The cryptocurrency market is evolving at a rapid pace internationally and domestically, and is attracting both domestic and international flows. With its fintech focus, Sygnia is well-positioned to become the first major financial services institution to embrace cryptocurrencies and to offer investors a secure trading and execution platform backed by an international infrastructure, well-designed custody and integration with standard savings products.”
Wierzycka refers to the security and the process of performing the activities according to the legislation in force. She revealed that the cryptocurrency trading activities will be subjected to taxing by the South African Revenue Service (SARS). Initially, SygniaCoin will operate based on legislation adopted by the crypto trading platform based in New York State, namely BitLicense.
A new dedicated fund will be released
Additionally, Sygnia has announced that it will launch a fund dedicated to investments in cryptocurrencies on behalf of investors, which will be able to store assets in their Sygnia wallets along with other currencies.
Shortly before, the Central Bank of South Africa (SARB) confirmed that crypto assets are considered as “cyber-tokens” due to the fact that they “do not meet the requirements of money“. The announcement came as the result of setting up a fintech platform in Q1 that aims to create new regulations.
South Africa’s Central Bank has previously established a “self-regulatory organization” to control the crypto and technology sectors and protect the economy against “systemic risk“.