Kuben Naidoo, vice-president of the Reserve Bank of South Africa (SARB), confirmed the important developments regarding cryptocurrency regulations in the country.
Kuben Naidoo conveyed an important development for cryptocurrencies at a seminar he attended as a speaker. While expressing that South Africa is ready to enact regulations regarding cryptocurrencies, Naidoo stated that cryptocurrencies will be recognized as a financial asset, not as a payment option.
Although South Africa does not intend to use cryptocurrencies as a means of payment, it does think that these assets should be in the mainstream. It is aimed to provide investor protection in a positive approach to cryptocurrencies, which are expected to be regulated as financial assets in the country.
The South African Central Bank (SARB) vice-president said in the continuation of his speech that they have been doing research on how cryptocurrencies can benefit the country's financial system for a long time. Naidoo underlined that although some cryptocurrencies have technologies that can bring innovation to the payment sectors, they do not intend to use them in payment transactions yet.
The audit of crypto assets in South Africa is expected to be carried out by the country's Financial Intelligence Center (FIA). The FIA will be the agency to monitor crypto assets to prevent malicious acts such as money laundering, tax evasion and terrorist financing in South Africa.
Following the recognition of cryptocurrencies as financial assets, the South African Government will also regularly monitor the functioning of cryptocurrency exchanges operating in the country. In this context, it will be ensured that customers who make transactions will be closely monitored within the scope of the studies to be carried out by taking the existing banking regulations as an example.
The Republic of South Africa, which seems to have a positive approach to cryptocurrencies, is on its way to becoming one of the countries that adopt cryptocurrencies in the African continent.
The Central African Republic, the second country to declare Bitcoin as a legal tender, recently announced that it will launch its own cryptocurrency. The country, which aims to tokenize its natural resources, continues to be a pioneer in the adoption of cryptocurrencies in Africa.