- Top South African cryptocurrency exchanges like Luno and VALR are all set to embrace new crypto regulations.
- Some of the top crypto exchanges in South Africa have already been following KYC rules along with necessary Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures.
Crypto exchanges in South Africa have extended their support over the regulatory action to treat cryptocurrencies as financial assets. The regulatory rules in the crypto space will kick in within the next 18 months. Crypto exchanges see this as a positive development that will boost crypto adoption in the country.
Earlier this week, the South African Reserve Bank (SARB) announced that it will bring regulatory rules to the crypto industry by early 2023. The central bank of South Africa expressed its desire to treat cryptocurrencies as financial assets and not as currencies. South African Reserve Bank deputy governor Kuben Chetty said:
By all definitions, it’s [cryptocurrencies]not a currency, it’s an asset. It’s something that is tradable, it’s something that is created. Some have backing, others do not. Some may have a genuine underpinning, real economic activity.
Crypto adoption in South Africa has been growing at a significant pace. More than 6 million South Africans have currently invested in the crypto space. The recent decision from SARB will bring more regulatory clarity for crypto firms operating in South Africa. This will further help them operate in a secure environment ensuring customer safety.
Here’s what top crypto exchanges in SA have to say
Crypto publication CoinTelegraph spoke to some of the top exchanges operating in South Africa. Marius Reitz, general manager at South Africa’s top crypto exchange Luno said that he welcomes the move of crypto regulations. Reitz added that it will create a safer environment for crypto users in the country. He added:
It will require crypto asset service providers (CASPs) to obtain FSP licenses and will be easier for the public to identify a trusted and licensed platform. It will create a barrier to entry for those platforms with no regard for the security of customer funds and customer information.
Beyond South Africa, Luno operates in a variety of global markets like Malaysia and Singapore. Reitz said that Luno has already been working to preempt regulatory changes in SA. Furthermore, he said that complying with new regulatory parameters won’t require them to have any major change in processes. Crypto exchange Luno already carries out KYC checks. Besides, it has also initiated necessary AML and CTF measures.
Another South African cryptocurrency exchange VALR is a very popular and trusted platform for crypto trading. Like Luno, VALR also has KYC checks along with AML and CTF measures. Besides, it also has its own risk management and compliance program. CEO Farzam Ehsani told CoinTelegraph that crypto regulations won’t create any hurdles for the exchange. He said that the entire crypto industry will fall under the Financial Intelligence Centre further adding:
VALR is already registered with the Financial Intelligence Centre and we have been working with the FIC for many years so any official regulatory framework in this regard will just formalize what VALR already has in place.
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