South Africa’s Intergovernmental Fintech Working Group released a position paper to regulate Cryptocurrency exchanges in South Africa.
Since already in South Africa existing laws are regulating Cryptocurrency use.
But in the present time IFWG released a new position paper to control the Cryptocurrency exchanges with more strict rules.
According to social media reports, the Government of South Africa is not in favour of Cryptocurrency use but still they don’t want to restrict people to buy & sell.
So they are ready with new rules and regulation laws.
Crypto Service Providers Should Follow AML/CFT Guidelines
A 49 paged document already released by the African’s government lawmakers.
This new position paper revised for the 25 recommendations of the old guidelines page.
According to African government, Old regulations rules are already implemented and followed by the Crypto assets related service providers already.
But there are many guidelines which have to be implemented and that will take much longer time to be followed.
In the new position paper of IFWG guidelines, they categorised the guidelines in three categories that should be followed by all the crypto assets related services.
In the first category of new position paper of IFWG, they explained about the anti-money laundering ( AML) and combating the financing of terrorism (CFT) activities restriction protocol.
And also they mentioned about the cash transaction related to crypto assets.
According to this rule they will track and restrict the cash transaction above $1818.
“It is further recommended that a new dispensation should be created under the exchange control framework to allow CATPs (licensed as above) to source or buy crypto assets offshore for the purpose of selling to the local market, subject to specified limits to be determined by Finsurv.”
In the third category, IFWG’s recommended that crypto related any type of assets should be considered as a financial product. We can’t consider it a valuable asset like gold or silver. So indirectly, IFWG emphasized on the point to declare Cryptocurrency assets as token-like stock market assets to categorise the Crypto assets in a particular category or create new one.