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South African government mulls policy change to regulate the crypto sphere

06 Dec, 2018
by Richard Allen
Regulation
South African government mulls policy change to regulate the crypto sphere

The South African government has opened the door for comments regarding a proposed policy change that may lead to certainty regarding crypto regulations in the country.

The South African Reserve Bank and the National Treasury are looking to rework the outdated National Payments System Act 78 of 1998 – a set of arrangements that allow the transfer of funds between customers, businesses and other entities.

A review will set the legislation on par with the rest of the world as well as ensuring that the regulation covers the sector of the economy that featured previously unregulated cryptocurrencies.

One of the recommendations seeks to “Allow/enable new or unregulated service providers, services, systems and instruments (e.g. virtual currencies, distributed ledger technologies and fintech companies).”

Comments on the policy are welcomed until 28 February 2019.

South Africa has kept a fairly open mind regarding cryptocurrencies. The South African Reserve Bank has also embraced distributed ledger technology with Project Khokha, a blockchain platform being developed on the Ethereum network designed to facilitate interbank settlements. As CCN reports, Project Khokha scooped the Best Distributed Ledger initiative several months ago.

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