South Africa Working Group Releases New Position Paper Calling for Regulation of Crypto Asset Providers – Regulation Bitcoin News

South Africa’s Intergovernmental Fintech Working Group (IFWG) has a released new position paper that calls for the regulation of the country’s cryptocurrency ecosystem. In the document, the IFWG, which is a creation of the South Africa Reserve Bank (SARB), recommends “a staged approach to bring crypto-assets within the regulatory remit through the regulation of crypto asset service providers (CASPs).”

Crypto Service Providers to Adhere to AML/CFT Requirements

The 49-page document also “sets out 25 recommendations for a revised South African policy, legal and regulatory position on crypto assets and related activities.” According to the IFWG, some of these recommendations “are already underway and in the process of being implemented while some will take much longer to implement.”

Meanwhile, in the position paper, the IFWG’s recommendations are grouped into three overarching categories. Concerning the first one, the working group recommends CASP adherence to the legislative requirements that are aimed at anti-money laundering and combating the financing of terrorism (AML/CFT). Some of these requirements include the reporting of “cash transactions of $1818.00 (R25 000.00) and above or the applicable threshold at any given time.”

Central Bank Arm to Monitor Cross-Border Crypto Transactions

In the second category, the IFWG says it wants the Financial Surveillance Department (Finsurv) of the SARB “to assume the supervisory and regulatory responsibility for the monitoring of cross-border financial flows in respect of crypto assets and CASPs.” In addition, the working group is recommending the amendment of certain parts of the exchange control regulations to enable the placement of crypto asset trading platforms (CATPs) under the purview of relevant bodies. The position paper states:

It is further recommended that a new dispensation should be created under the exchange control framework to allow CATPs (licensed…

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