South Africa tightens cryptocurrency regulation

South African regulators intend to tighten control over the cryptocurrency industry, follows fromdocument submitted by the Intergovernmental Fintech Working Group (IFWG).

IFWG Position Paper on Cryp… by ForkLog on Scribd

The IFWG includes the South African Reserve Bank, the Financial Sector Supervisory Authority and the country's Ministry of Finance and other regulatory authorities in South Africa.

According to the document, cryptocurrency should not receive legal tender status, and its use should be strictly controlled.

At the same time, it is proposed to use cryptocurrencies “for internal payment purposes” and regulate them accordingly within the framework of sandboxes.

It is assumed that the supervision of the crypto industry in South Africa will be carried out in accordance with the recommendations of the Financial Action Task Force on Money Laundering (FATF).

The authors of the document indicate that cryptocurrency companies will have to register with the regulator.

Regarding tokensales, IFWG offersagree on ICO rules with local securities regulation schemes. At the same time, token issuers will have to provide the white paper of the project to regulatory authorities.

Recall that the Central Bank of South Africa began experimenting with the regulation of cryptocurrencies back in 2017.