South African Reserve Bank
SA Reserve Bank Confirms Banks Can Work With Crypto Exchanges
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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 t...
Bitcoin not a currency? South Africa to regulate crypto as financial asset
The South African Reserve Bank is set to introduce regulations next year that will see cryptocurrencies classed and treated as financial assets to balance investor protection and innovation. Cryptocurrency use in South Africa is in a healthy space, with around 13% of the population estimated to own some form of cryptocurrency, according to research from global exchange Luno. With more than six million people in the country having cryptocurrency exposure, regulation of the space has long been a talking point. Companies or individuals looking to provide advice or intermediary services involving cryptocurrencies are currently required to be recognized as financial services providers. This involves meeting a number of checkboxes to comply with global guidelines set out by the Financial Action ...
South Africa finishes technical PoC for wholesale CBDC settlement system
South Africa has taken another step closer to implementing its central bank digital currency (CBDC) as the South African Reserve Bank (SARB) concludes a technical proof-of-concept for the project. The project, titled Project Khokha 2 (PK2), is the second phase of SARB’s Project Khokha (PK1), launched in 2018. It experimented with distributed ledger technology (DLT) for interbank payments’ settlement, successfully replicating the banks’ “SAMOS” real-time gross settlement system. This second phase, PK2 was launched in February 2021 and tested DLT with clearing, trading and settlement within the proof-of-concept environment with industry participants Absa, FirstRand, JSE Limited, Nedbank and Standard Bank who form the Intergovernmental Fintech Working Group (IFWG). Using the technology,...
SA Regulator Flags Crowd1 as Suspected Pyramid Scheme
South African financial regulators have been taking a renewed critical look at Crowd1 – a nebulous, highly controversial and popular Spanish (or Russian) company that claims to be a networking marketing firm, among other things. Crowd1 has already been banned in Namibia and the Philippines, and other countries, under suspicions of foul play. Since last month, the South African Reserve Bank (SARB) Prudential Authority has been investigating Crowd1 – a part of what is known as Impact Crowd Technology Group. Looking specifically into whether or not the company is a deposit-taking organisation. According to MoneyWeb, Crowd1 has vehemently denied allegations made against it that it is, in fact, a pyramid scheme. However, claims made by the Bank of Namibia suggest just that. The Bank claim...
