South Africa is seeking to allow crypto assets to be traded as financial products to facilitate market regulators’ oversight and help protect consumers.
According to the country’s Financial Services Authority notice published recently in the Official Gazette, crypto assets are a digital representation of value.
The notice, according to Bloomberg, stated that the country will allow encrypted (digital) assets to be traded, transferred or stored electronically for payment, investment or other forms of benefit.
The Reserve Bank of South Africa works with other regulators to identify currencies as financial products in order to facilitate their monitoring from the perspective of countering money laundering and terrorist financing.
The World Wide Web Index estimates that around 15% of South Africans invested in Bitcoin in 2020.
After that year, the emerging industry experienced crashes, including the demise of “Mirror Trading International” after it lost $ 1.2 billion last year.
South Africa’s move is in line with the trend of governments around the world to regulate cryptocurrencies to protect users from troubled currencies and scammers.