{"id":473894,"date":"2022-07-14T12:54:16","date_gmt":"2022-07-14T09:54:16","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/south-african-exchanges-welcome-the-new-crypto-is-financial-asset-ruling\/"},"modified":"2022-07-14T12:54:16","modified_gmt":"2022-07-14T09:54:16","slug":"south-african-exchanges-welcome-the-new-crypto-is-financial-asset-ruling","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/south-african-exchanges-welcome-the-new-crypto-is-financial-asset-ruling\/","title":{"rendered":"# South African exchanges welcome the new &#8216;crypto is financial asset&#8217; ruling"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af9c53fde320\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af9c53fde320\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/south-african-exchanges-welcome-the-new-crypto-is-financial-asset-ruling\/#%E2%80%9D_South_African_exchanges_welcome_the_new_%E2%80%98crypto_is_financial_asset_ruling_%E2%80%9C\" >&#8221; South African exchanges welcome the new &#8216;crypto is financial asset&#8217; ruling  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_South_African_exchanges_welcome_the_new_%E2%80%98crypto_is_financial_asset_ruling_%E2%80%9C\"><\/span>&#8221; South African exchanges welcome the new &#8216;crypto is financial asset&#8217; ruling  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvYjY0YjMyNDMtMmE1MS00ZjQ5LWI3ZDAtZDFiM2Y2ZmRlY2I5LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-28d77a7a>South Africa\u2019s Reserve Bank is set to begin regulating cryptocurrencies as financial assets in the next 18 months, with exchanges expecting the move to drive adoption in the country.<\/p>\n<p>The move to classify cryptocurrencies as financial assets\u00a0and not currency, has been talked about for some time by the South African Reserve Bank (SARB). Deputy governor Kuben Chetty confirmed that the new regulations would take effect over the next year, speaking in an online dialogue on July 11.<\/p>\n<p>The cryptocurrency space has been left to develop organically in South Africa, with no clear-cut regulations issued by the SARB until recently. The country has become a leader in cryptocurrency adoption, with more than 6 million South Africans <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/discover.luno.com\/research-the-state-of-crypto-in-africa\/\">estimated<\/a> to own some cryptocurrency.<\/p>\n<p>Now that the SARB has finally taken a stance toward the ecosystem, exchanges, traders, and investors can begin to take stock of the ramifications. Cointelegraph reached out to prominent exchanges operating in the country to gauge the perception of the SARB\u2019s regulatory attitude.<\/p>\n<p><em><strong>Related: Africa\u2019s top golfers to shoot for Bitcoin prize on Sunshine Tour<\/strong><\/em><\/p>\n<p>Marius Reitz, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> manager for Africa at global cryptocurrency exchange Luno, has been a proponent of clear regulatory parameters for the cryptocurrency industry. In correspondence with Cointelegraph, Reitz welcomed the regulatory move and believes it will create a safer environment for users in the country:<\/p>\n<blockquote><p>\u201cIt will require crypto asset service providers (CASPs) to obtain FSP licenses and will be easier for the public to identify a trusted and licensed platform. It will create a barrier to entry for those platforms with no regard for the security of customer funds and customer information.\u201d<\/p><\/blockquote>\n<p>Reitz said that Luno was in a fortunate position to preempt regulatory changes in South Africa, given that the company operates in a variety of markets globally that already have strict regulatory guidelines like Malaysia and Singapore.<\/p>\n<p>The Luno GM for Africa said complying with new regulatory parameters would not require a step-change in its processes aside from country-specific nuances. Luno already carries out KYC checks, sanctions screenings as well as anti-money laundering (AML) and counter-terrorism financing (CTF) measures. <\/p>\n<p>Reitz also suggested that more exchanges could make use of proof of reserves verification. Although not required as a law, Luno undertook an audit of its crypto holdings to confirm custody of customers&#8217; assets to provide an added level of trust to customers.<\/p>\n<p>It\u2019s also business as usual for VALR, another South African cryptocurrency exchange which has quickly grown into a trusted platform for local crypto traders and users. CEO Farzam Ehsani told Cointelegraph that the company is already conducting itself as a regulated entity, adopting KYC checks and a risk management and compliance program. <\/p>\n<p>VALR also has AML and CTF policies in place and has worked with authorities to combat the illicit movement of funds. Ehsani was confident that developing regulations for the space would not lead to stifling controls, with the industry set to fall under the purview of the Financial Intelligence Centre:<\/p>\n<blockquote><p>\u201cVALR is already registered with the Financial Intelligence Centre and we have been working with the FIC for many years so any official regulatory framework in this regard will just formalize what VALR already has in place.\u201d <\/p><\/blockquote>\n<p>The SARB continues to explore the possible use of a central bank digital currency (CBDC) through its Project Khokha initiative. A number of prominent players from the traditional banking sector in South Africa have been actively involved in testing a proof-of-concept for the proposed CBDC settlement system.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/south-african-exchanges-welcome-the-new-crypto-is-financial-asset-ruling\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; South African exchanges welcome the new &#8216;crypto is financial asset&#8217; ruling &#8220; South Africa\u2019s Reserve Bank is set to begin regulating cryptocurrencies as financial assets in the next 18 months, with exchanges expecting the move to drive adoption in the country. The move to classify cryptocurrencies as financial assets\u00a0and not currency, has been talked&#8230;<\/p>\n","protected":false},"author":1,"featured_media":473895,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvYjY0YjMyNDMtMmE1MS00ZjQ5LWI3ZDAtZDFiM2Y2ZmRlY2I5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74858,74863,74355,70934,72602],"class_list":["post-473894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-regulation","tag-cryptocurrencies","tag-adoption","tag-regulation","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/473894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=473894"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/473894\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/473895"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=473894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=473894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=473894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}