South Africa jumps on board to regulate cryptocurrency
Since the introduction of cryptocurrency in 2008, countries have seemingly taken two different approaches in its adoption, divided between early adopters and laggards. These approaches are directly related to how a country views digital currency. And, because of conflicting views surrounding it, regulators across the world often disagree on regulations for the crypto industry.
Despite the world lagging behind the adoption and regulation of cryptocurrency, many countries are taking progressive steps towards crypto-related legislation. South Africa has recently joined the list.
The country established a crypto assets regulatory working group on January 2nd, which aims to investigate cryptocurrency and digital ledgers, as well as their potential positive impact on the South African governmental and societal institutions. Members of the group include representatives from the Treasury, the Financial Sector Conduct authority, the South African Revenue Service (SARS), and the Financial Intelligence Centre.
“It is anticipated that, following broad industry comment and participation, the crypto assets regulatory working group will be ready to release a final research paper on the subject during the course of 2019,” said Tito Mboweni, South Africa’s finance minister.
He further added that the South African Revenue Service is drafting laws to mandate crypto-investors and traders to pay taxes and give more options for cryptocurrency in tax forms.
Research shows that South Africans are receptive to the idea of digital currency, with 38 percent of the country’s residents wishing they invested in cryptocurrency when it first hit the market.