The cryptocurrency linked regulations have the changing phase soon in African surroundings.
The Reserve Bank of Nigeria towards its progressive stance on cryptocurrency related guidelines has released a session paper into the adoption of cryptocurrencies in the community on January 16, 2019.
The Intergovernmental Fintech Working Group (IFWG) comprising members out of the Financial Intelligence Centre Sector (FIC), Financial Sector Conduct Authority (FSCA), National Treasury (NT), South African Revenue Service (SARS) and then the South African Reserve Bank (SARB) has proposed various protocols through the consultation report.
Further, the Reserve Bank asked the populace to review the drafted policy proposal and submit the suggestions latest by February, 15.
However, the financial regulatory bodies, central banks, and policymakers are continuously observed in the process of understanding and taking measures with the safe and secure landscape in the land since 2019. At that moment a joint initiative some of the South African Reserve Bank, the Financial Services Board (currently the Financial Sector Conduct Authority), the South African Revenue Service additionally, the Financial Intelligence Centre together issued a statement related to cryptocurrency and advised people on the risk inside your use of cryptocurrency (the term ‘virtual currencies’ was used to refer to crypto assets).
Due on the mounting awareness, speedy innovation in financial technology, and curiosity towards blockchain & crypto assets (“crypto asset” the words given by the African regulators as opposed to “cryptocurrency”) safer financial laws are gonna regulate in the interest from the citizens. The paper also recognizes “cryptocurrencies” for “important fintech innovation” and “it may change up the financial sector of the united states.”
The report underlined,
“Upon conclusion in the consultation phase, the regulatory authorities will specify the way forward by using a policy instrument possibly a guidance note or position paper aimed for that first quarter of 2019.”
As per the paper, for any forthcoming regulations of this thrilling industry, the authorities will submit policy instruments with the first quarter of 2019. The IFWG, while using the paper directing to the safety with illegal activities and projecting the regulations which potentially able to reduce the prevalence of scams, anti-money
laundering (AML) issues, and therefore, would help in combating the financial terrorism (CFT).
The rationale and the scope of the IFWG consultation paper on cryptocurrency regulation of
sketched on three crucial topics:
? Initiate progressive regulations in your cryptocurrency arena.
? For that industry participants and stakeholders introduction of policy proposals.
? The indications within the perceived risks and report about the associated advantages with cryptocurrencies.
Further, the audience accentuates that as a way to monitor the unregulated sector in order to prevent from banning the cryptocurrency trade, the functions akin to those of securities and commodities end up performed by crypto-assets.
Also, the paper is stressing about the proposed objective of the regulations and stated that in case there is government-issues crypto assets, the Reserve Bank can provide new regulations plus these guidelines are here to measure the non-governmental issued cryptocurrencies.
Now, this can be something interesting to spotlight the indications or possibly a Reserve Bank is anticipating to issue the cryptocurrencies on the citizens or it’s only a future consideration???
Whether it becomes a restriction on anonymous crypto-assets? An exciting new rule-book for bitcoin investors or heading with the establishment of banking-like features to your crypto-markets, and taking outwitting steps ? Which is certainly contrary to the code and character products Bitcoin stands for.
