South Africa Has Been Among the Slowest of the Advanced Economies to Develop Cryptocurrency Regulations
South Africa is taking significant steps toward solidifying a regulatory framework for bitcoin and cryptocurrencies. The South African Reserve Bank (SARB) has announced that it will begin to trial a number of regulations pertaining to virtual currencies. South Africa has been among the slowest of the advanced economies to begin to develop a juridical apparatus for cryptocurrencies, garnering criticism for failing to embrace virtual currencies and blockchain technology sooner. Loerien Gamaroff, CEO of blockchain services company Bankymoon, has revealed that his company will be the subject of a trial of SARB’s preliminary regulations. Gamaroff confirmed that he has had consistent contact with The South African Reserve Bank in discussing the regulatory sandbox, and has conducted several seminars pertaining to potential use cases for cryptocurrency within the South African economy. Gamaroff also revealed his involvement with government-directed research into alternative cryptocurrencies.
The announcements come amidst growing acceptance of cryptocurrency technology within South Africa
“All we are doing at this point is seeing how far this relationship will go on within this sandbox,” Gamaroff stated. “This is because the Reserve Bank is very hesitant to give a stamp of approval on anything that comes out. The sandbox will only be Bitcoin-focused during this initial phase, but is focused on applying broad regulations to all cryptocurrencies,” he said. Gamaroff has expressed his belief that regulations are ultimately positive for cryptocurrency, and will be vital in attaining legitimacy for virtual currency use in South Africa. “I think the regulation will move things along and make people on the street comfortable with Bitcoin. With these new regulations, these everyday people can now trust that Bitcoin is not just for hackers and criminals,” Gamaroff said. In February, SARB announced intentions to develop a national virtual currency that would based on distributed ledger technology. SARB also described plans to carry out research regarding the feasibility of cryptocurrency and blockchain adoption within South Africa. The announcements come amidst growing acceptance of cryptocurrency technology within South Africa. Michael Jordaan, the former CEO of First National Bank, recently stated his support for cryptocurrencies, and belief that they will one day come to rival fiat currencies. P2P trading volume has also enjoyed consistent growth in recent months. Do you think that Bankymoon will enjoy an unfair ‘headstart’ over its competitors within the South African cryptocurrency industry through being the sole company involved in the trial of SARB’s regulations? Share your thoughts in the comments section below!