As the adoption of cryptocurrency continues to increase, regulators worldwide are working tirelessly to develop regulations to avoid risks. Already, an Intergovernmental Fintech Working Group (IFWG) in South Africa has prepared a policy position paper on crypto assets. The aim is to make recommendations for creating a regulatory framework for crypto assets. This also covers suggestions or regulatory changes that needs to be executed. The position paper highlights the following:
The implementation of an anti-money laundering and counter-terrorism financing regime.
A licensing and supervisory regime from a conduct of business perspective.
A regulatory regime for the monitoring of cross-border financial flows.
The paper was developed to build on a consultation paper on crypto assets that was first released by the IFWG on 16 January. Among other things, the paper highlights possible benefits and risk associated with crypto asset-related activities. It also allows industry stakeholders and participants to comment on points highlighted in the paper. These comments are expected to be provided by 15 May.