The central bank governor stated that crypto assets would officially be recognised as a financial asset in South Africa within 12 months
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Kuben Naidoo, the Deputy Governor of South Africa Reserve Bank (SARB), announced that SARB plans to adopt legislation next year that would classify and regulate cryptos as financial assets to balance investor safety and innovation.
The announcement came during a webinar held on June 12, where Naidoo shared the news and also shared that the regulations will most likely be released within the next twelve months and will not recognise cryptos as a payment method but as a financial instrument that may also be used in the mainstream sector.
He added, "We are not intent on regulating it as a currency as you can't walk into a shop and use it to buy something. Instead, our view has changed to regulating (cryptos) as financial assets. There is a need to regulate and bring it into the mainstream, but in a way that balances the hype and with the investor protection that needs to be there."
Naidoo, while continuing with the discussion about crypto regulation, said that aside from all of the excitement that surrounds crypto, central banks around the globe are examining and working on understanding the industry to determine what kind of benefits it may bring with it to the financial system in addition to ongoing regulation initiatives.
Furthermore, Naidoo also stated that some crypto assets bring significant technology improvements that can enhance many industries, such as payment.