Cryptos: The South African central bank plays appeasement! Confined so far to a hard political line vis-à-vis players in the crypto world, the South African central bank now wants to play the appeasement card. An encouraging sign was sent to the various platforms, to the main players in the ecosystem, and also to South African cryptophiles.
South Africa more sympathetic to cryptos
If there has long been talking of a tough policy towards crypto investors or suppliers, South Africa seems to be watering down its wine. And now invites banks to be less radical in their relations with those who shape the crypto universe.
Because in the past the trend was towards a lack of communication between banks and cryptocurrency service providers, due to high-risk factors, the South African authorities intend to renew dialogue with the major players in this sector.
In order to link words to deeds, the prudential authority of the central bank has presented a number of directives. While the objective always remains to prevent illicit activities, the entity encourages banks not to cut all ties with digital assets.
According to the South African central bank, cutting off customers and suppliers involved in the cryptocurrency industry could pose a threat to financial integrity. And prove to be complex to manage over a long-term approach.
At the end of July, the South African central bank published an assessment of risks within the banking sector. According to the report, digital assets were among the top 10 threats identified.
Now too important to be ignored and relegated to the background, the crypto market needs to be better regulated. In any case, this is the bias taken by the South African authorities.
A positive element for the local crypto ecosystem!
This announcement was obviously received very positively by the local crypto ecosystem. Thus, South African crypto exchanges believe that the measure should boost the adoption of digital assets across the country. South Africa also has a rich ecosystem and several jewels.
This is particularly the case of Bitcoin Ekasi, a township that introduced Bitcoin in order to accelerate the financial inclusion of certain local communities.
Other more traditional players, such as Unravel Surf Travel, offer travel services with the possibility of paying with digital assets.
Regulate to better reign
A thorny issue for many months, visible in Europe with the MiCA law, regulation is making a comeback in the forefront of crypto news. The South African government plans to legislate within 12 months on the status of cryptocurrencies.
Elsewhere in the world, the crypto issue is also at the heart of the debates. The United Kingdom seems to want to adopt a more conciliatory policy towards crypto platforms. The FCA (Financial Conduct Authority) has also just authorized the Crypto.com platform to deliver its services on British territory.
Same thing in France, where the issuance of PSAN authorizations concerns a growing number of players in the sector.
For a large number of countries, the question of developing a national crypto ecosystem seems to become a matter of strategic order.
For a large number of countries, the question of developing a national crypto ecosystem seems to become a matter of strategic order.
And no one wants to pass up the opportunities that the market could offer.
The soothing discourse of the South African central bank nevertheless takes the opposite view to what can still be observed elsewhere. And especially in South Korea where the legislator has just suspended 16 crypto platforms.
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