South Africa is one of the crypto-friendly countries in the world, however, the rules of the South African government restrict any crypto-related transactions outside the country, and also no crypto asset has been officially stated as a legal tender.
But better regulations concerning the crypto industry are being put in place which would give full freedom to people to invest in crypto assets.
In recent times, many reports have hinted at the next level of crypto adoption and regulation by the South African government.
The majority of these reports are based on the activities surrounding crypto companies, banking services and even the Central Bank agency.
Luno, a popular crypto exchange in South Africa, claimed a majority of fund manager firms in South Africa are working on creating their fund products backed by crypto assets. Also, plans are being put in place to list their products on the Johannesburg Stock Exchange.
Review Investment analyst, Brett Hope Robertson, explained that talks about bringing a legal framework to the crypto industry on managing crypto funds products with exchanges, are going down between the Central Bank of South Africa and the Intergovernmental Fintech Working Group.
Richard DeSousa, CEO AltcoinTrader, shared his opinion on reports like these saying that he believes that regulators will bring better legislation of the laws in favor of the Economic system.
Ovex executive, Jonathan Ovadia, weighed in on the situation saying that he anticipates better results because the regulatory agencies work to introduce better legislation and laws for the industry.
And also he hopes that all existing partnerships of the Ovex with other financial institutions and services will get better clarity and that better support will be offered to financial institutions’ crypto promotion.
Regulating the policies in favour of crypto assets would mean a lot to not just the South African economy, but the African economy at large as cryptocurrency provides flexibility to any economy and a chance to carry out transactions using diverse monetary markets across the globe can do a whole lot for the economy of any state.
The looming regulation offers endless benefits and opportunities to Africa as the technology is highly secure and provides alternatives to the usual banking and transactions.
Cryptocurrency is perfect for African citizens who are unbanked because it is readily available, easily accessible and secure compared to the typical currencies.
Crypto accounts also allow for easy payment for utilities and services rendered. the regulation and approval of this computerized banking would enable the building and collation of a virtual financial history which is necessary for the receipt of loans.
It can also be used for investment in various business opportunities.
Leading international establishments believe that crypto trade and transactions between African countries could be prompt an increase in the economy.
More so, digital currency can now be used for both cross-border and international trade.
Local businesses would greatly benefit considering how fast and effective the use of cryptocurrency is for cross-border transactions.
Additionally, the seamless access to a tremendous customer base via cryptocurrency approval presents the possibility for rapid growth in sales in the Africa marketplace.
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