In order to tame adequately the crypto-industry, an intergovernmental group of south africa has issued a series of recommendations for the establishment of a regulatory framework well-defined with respect to crypto-currencies.
A crypto-strict regulation
The institutional group south-african Fintech Working Group (IFWG) composed of the central bank, financial authorities and the Treasury issued a series of recommendations aimed at putting an end to the anonymous nature of criminal and crypto-currencies.
In a document published by the IFW, the panel outlines the establishment of a regulatory infrastructure solid adapted to crypto-currencies. The entity is also moving towards a regulatory universal crypto-currencies which aligns with the guidelines set out by the FATF.
In 2019, the FATF had strongly urged the country to comply with ” Travel Rule “, a new standard of crypto-based regulation on anti-money laundering (AML) and the financing of terrorism. These recommendations also relate to a clear prescription regarding the public issues of crypto-currencies, in particular the emissions of ICOs. The FATF hopes that the offers of tokens are subject to the same regulations that govern the emission of ” securities. ”
A legal currency?
So far, the legal provisions related to crypto-currencies was limited to the taxation. And because of the close ties between the crypto-industry and of alleged criminal activities, the central bank has always stressed that the crypto-currencies did not meet the requirements of currency of payment.
In the document recently published by the IFWG, the central bank has specifically called for that crypto-currencies are not recognized as legal currency on the national territory.
If the approach to severe in terms of crypto-regulation of the IFWG were to be adopted by the legislators of the country, the growth of the crypto-african industry could significantly retract. All the more that South Africa is one of the african countries where the craze around this area has exploded in recent years.
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