Report: South African Government Releases Consultation Paper on Cryptocurrencies

South African Reserve Bank (SARB) has published a consultation paper assessing the benefits, risks of cryptocurrencies and crypto assets.


The document titled “Consultation Paper on Policy Proposals for Crypto Assets” is released as a birth draft of last year’s joint team provisions of the country’ government agencies; consisting South African Reserve Bank (SARB), National Treasury (NT), Financial Sector Conduct Authority (FSCA), South African Revenue Service (SARS) and the South Africa Financial Intelligence Centre (FIC); as explained in an official statement.

In this paper, the South African government reviews cryptocurrencies within the state’s context and clarifies that they do not intend to ban cryptocurrency trading or crypto payments at the moment.

Detailing its content, the paper analyses the scope of cryptocurrency terms and services being assessed and provides recommendations for dealing with crypto assets in the country. The document highlights the following propositions:

Crypto consultation paper snippet

Proposes the registration of all crypto related platforms and services including crypto asset trading platforms, custodial e-wallet providers, Payment service providers and crypto ATM’s under the recently formed Intergovernmental Fintech Working Group (IFWG) – the IFWG launched by the SA government aims to foster innovation, common understanding among investors, ensure investors protection and efficient functioning of the financial markets.

Also highlighted in the document are compliance acts on Anti-Money laundering and Counter-Terrorism Financing requirements for crypto-related businesses.

In all, the joint statement announced by the agencies, states that the document will be open to public and crypto-related parties for assessment and feedback via e-mail [email protected] until February 15, 2019 after which the joint agencies will consider these inputs and make informed decisions.

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