South Africa Plans Administrative Framework for Crypto Under Currency Act - Crypto Economy

The South African government will soon publish a regulatory draft to integrate cryptocurrencies into the capital flow management regime. This was reported by Finance Minister Enoch Godongwana, who added that this measure, protected under the Currency and Exchanges Act, seeks to establish formal control over the cross-border movement of digital assets, complementing existing regulations against money laundering and financial fraud.

The government’s initiative arises following a court ruling that determined current exchange control rules did not apply to cryptocurrencies, as they are not legally considered “money.” This regulatory vacuum forced the Treasury and the South African Reserve Bank (SARB) to accelerate the creation of crypto asset regulation in South Africa that defines administrative responsibilities and reporting requirements for investors and platforms.

In the coming months, market participants should monitor the publication of specific parameters for international transactions and the outcome of the SARB’s appeal regarding the legal nature of these assets. The final resolution will determine whether cryptocurrencies will face restrictions similar to foreign currencies or if they will maintain a distinct status as tradable digital assets.

Source:https://goo.su/plTzwR

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