The imminent growth of the Cryptocurrency on the African continent and particularly in countries such South Africa and Nigeria, is leading authorities to notice and consider some regulations on the crypto ecosystem.
On Tuesday 14, 2020 news coming from South Africa note that the Minister of Finance, Tito Mboweni proposed an amendment to FICA (financial intelligence centre act) that will go to public auscultation, which will ask for comment to the South African citizens about their alignment with the International standards to comply with FATF (Financial Action Task Force) also with the actual legislation proposed on the amendment!
The amendment will go to public comment.
It means, the country will ask citizens about their amendment to rule Crypto assets on the country.
The government will be conducting several measures to ensure customers and institutions comply with KYC policy, will make sure that crypto financial firms in the country can be registered as "accountable companies", and this companies will have to:
Conduct KYC to customers
Conduct Customer diligence and keep records
Monitor suspicious transactions , report transactions above R25,000 among many other measure.
Doing this the African country could be upfront in the continent to regulate Crypto business and activities, South Africa is also one of the countries that have major crypto holders in the world. South Africa and Nigeria are leaders on the continent in terms of Crypto transactions and trade, Nigeria is the leader on trade on P2P Bitcoin negotiations and haven't show any sign to regulate Cryptocurrency on the country.
There are also too much work to be done among other countries in Africa that still to learn more about crypto, and to understand that Bitcoin isn't the unique decentralized coin in the ecosystem, countries such South Africa have an advanced society that see Crypto as financial instrument.
South Africa could be the first to regulate Crypto on the continent.
Let's see what this will bring to more African countries in terms of acceptance of Crypto knowing that South Africa is one powerful economy on the continent and in the world.
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