The South African reserve Bank (SARB) triggers the creation of a self-regulatory organization to control cryptocurrency and FinTech industries.
SARB currently does not supervise or regulate cryptocurrencies, but in order to ensure investor protection and prevent the risk, it was decided to establish a special unit aimed at monitoring changes in the industry.
Bridget king, a representative of the Central Bank, said the self-regulatory organization (SRO) will be deemed non-state Agency authorized to set their own rules, guidelines and standards. Measures to prevent risks will allow emerging cryptocurrency industry in southern Africa to remain competitive in the world. King said:
“Regulation of cryptocurrency may have negative consequences for development and innovation in the industry. In addition, if the laws are developed on the basis of technology that is still in the growth phase, there is a risk that by the time of the adoption of the legislation, the technology may change so much that the regulations will require nearly instant updates to match”.
In December last year South African revenue service (SARS) has announced that it will begin to explore methods to track trading in the digital currency with the goal of bringing to responsibility for tax evasion.
In January 2018, the SARB announced the creation of a task Fintech group, which will consider the position of the Bank in respect of crypto-currencies, and regulatory issues, including clearing and settlement risks, monetary policy, the impact of information sharing and financial stability.