South African exchanges welcome the new 'crypto is financial asset' ruling
South Africa’s 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 and 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.
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 estimated to own some cryptocurrency.
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’s regulatory attitude.
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Marius Reitz, general 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:
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.
The Luno GM for Africa said complying with new regulatory parameters would not require a
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