The latest cryptocurrency regulations in South Africa have the power to boost partnerships. However, many believe these regulations could marginalize those who need crypto the most.
Crypto Regulations Will Be Done In 2022
South Africa started working on a series of regulations to improve its financial laws. Based on the latest data, providers of digital assets will soon become accountable institutions.
The South African Treasury announced the regulations are supposed to finalize in 2022. Overall, the proposed changes will ensure that anyone who provides crypto-related services gets recognized as a financial service provider.
This means they would also have to comply with the relevant laws.
Regulation should further help people recognize licensed and unlicensed cryptocurrency service providers and remain safe while purchasing, trading, and storing their digital assets.
However, some claim that KYC and AML acts would push already marginalized groups further down. According to Hermann Viver, the founder of Bitcoin Ekasi, authorities are trying to approach with a one-size-fits-all solution, but that might not be the right approach.
Viver believes there should be a threshold where those who earn below a certain amount should not bother with compliance when dealing with cryptocurrencies.
Still, the idea of money laundering and terrorism risks isn’t a surprise for Viver and others in the African crypto community.
Additionally, the South African government will also handle stablecoins. What’s more, the ideas and plans related to the central bank’s digital currency are openly discussed in South Africa.