W Power 2024

Crypto Currency in South Africa May See Stablecoin Regulation: Budget 2024

All poised to go through another round of regulatory reform, crypto currency in South Africa is certainly keeping ahead of the curve

Shashank Bhardwaj
Published: Feb 23, 2024 04:32:23 PM IST
Updated: Feb 23, 2024 04:31:22 PM IST

Crypto Currency in South Africa May See Stablecoin Regulation: Budget 2024Image: Shutterstock

When you speak of crypto-friendly countries, South Africa’s name may pop to mind. Last year, regulatory bodies FSCA (or the Financial Sector Conduct Authority) and FIC (or the Financial Intelligence Centre) in the country named crypto a financial product. They further started registration for crypto asset service providers. Now this year, in terms of crypto currency in South Africa, the 2024 Budget states stablecoins will be considered as a certain type of crypto.

The South Africa Budget went on to highlight the requirement of structural reforms in regard to public financial management. It was revealed that the Treasury plans to encourage adoption of virtual payments. This involves analysing the potential of blockchain and stablecoins in serving the underserved and marginalised.

The Intergovernmental Fintech Working Group in South Africa is expected to look into the use cases of stablecoins in the coming times, along with regulatory implications. Notably, the same Group had published a crypto regulation paper back in June 2021. This paper will now be reformed to include stablecoins in the category of crypto as an asset class, and the Group will share a final verdict on the possibilities of the national stablecoin landscape:

“In 2024, the Intergovernmental Fintech Working Group will publish additions to include “stablecoins” as a particular type of crypto asset…. It will conduct analytical work to understand the applicable use cases of stablecoins and to recommend an appropriate policy and regulatory response.”

Further, in crypto currency in South Africa, the Financial Intelligence Centre Act stands to be amended so all institutions are required to report crypto trades over 49,999 South African rand, equivalent to about 2,650 USD.

Additionally, the South Africa Budget 2024 mentions a study on the impact of blockchain-powered tokenisation in national markets. The Intergovernmental Fintech Working Group is expected to publish a discussion paper detailing the implications of such tokenisation and blockchain-based financial market structure in general by December 2024.

While a presidential election is to run on May 29, the South Africa Budget 2024 certainly positions the nation among the front runners when it comes to regulating the emerging crypto space around the globe.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
Twitter: @bhardwajshash

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