South Africa Is Legally Recognizing Crypto as a Financial Asset

New regulations in the country have been met with positive attitudes.

South Africa Is Legally Recognizing Crypto as a Financial Asset

With South Africa being one of the leaders in cryptocurrency adoption, it is clear why the Reserve Bank (SARB) is starting to pay more attention to the crypto world. Within the next 18 months, it plans to set some regulations and regard cryptocurrency as an asset instead of a currency.

For a long time, the crypto world in South Africa was left to evolve on its own. Now that over 6 million South Africans own some cryptocurrency, the SARB is taking action by reaching out to several exchanges in the country.

Marius Reitz, Africa’s general manager at global cryptocurrency exchange Luno, has embraced the regulations and feels that it will reinforce the safety of users in the country, saying:

“It will require crypto asset service providers (CASPs) to obtain FSP licenses and will be easier for the public to identify a trusted and licensed platform. It will create a barrier to entry for those platforms with no regard for the security of customer funds and customer information.”

So far, South Africa seems to have quite a positive approach to crypto and its ups and downs and is progressing relatively smoothly in its understanding and acceptance of this new approach to finance.

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