Even though more individuals, organizations, and corporations know about cryptocurrency than ever, the truth is that many countries do not know exactly how to regulate the sector. There are countries that immediately view cryptocurrency as a threat, while there are others that are seeking to quickly ensure that they embrace blockchain and cryptocurrency to boost their local economy.
It appears as though South Africa is finally taking the steps to explore how to regulate cryptocurrency. Specifically, the South African government has established a crypto assets regulatory working group.
Finance Minister Comments
The finance minister of South Africa, Tito Mboweni, stated that the group will be releasing a paper soon. He stated: “It is anticipated that, following broad industry comment and participation, the crypto assets regulatory working group will be ready to release a final research paper on the subject during the course of 2019.”
He also pointed out that the South African Revenue Service will soon be implementing options for cryptocurrency in their tax forms, and coming up with a concrete way for those who trade/invest in cryptocurrency to pay taxes.
For some context, it should be noted that many South Africans are not only aware of cryptocurrency, but a significant percentage of them view cryptocurrency as a positive way to accrue wealth. In a survey conducted earlier this year, it was revealed that 38% of the respondents “wished they had invested in” cryptocurrency. In addition, a majority of those surveyed – over 70% – stated that “You can make a lot of money with them.”
A new cryptocurrency trading platform by the name of VALR is also planning a launch in South Africa, in partnership with well-known cryptocurrency exchange Bittrex. The platform will apparently utilize machine learning and artificial intelligence to help with identification. Bittrex CEO Bill Shihara said about the partnership: “Our partnership with VALR gives us the opportunity to help drive adoption of this technology in new markets.”