Report: Moving of Locally Acquired Cryptocurrencies to Overseas Exchanges Barred in South Africa, Jail Time For Offenders
New information coming from South Africa indicates that the moving of locally acquired cryptocurrencies to abroad crypto exchanges will now be subservient to her exchange control regulations. Therefore, dealings where an individual acquires crypto assets in South Africa and uses them to objectify “any right to capital” will be convicted as a criminal
Possibility of Internment
Followed by a Mybroadband report, this fresh rendition of South Africa’s exchange control regulations is included in the FAQ document lately published by the Intergovernmental Fintech Working Group (IFWG), a group consisting of South Africa’s financial regulators.
They explained in the document: “Exchange Control Regulation 10(1)(c) prohibits transactions where capital or the right to capital is, without permission from the National Treasury, directly or indirectly exported from South Africa.”
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The IFWG document state further that individuals in dispute with these regulations will be charged with a financial penalty of more than $17,500 (250,000 rands) and risks up to five years in prison.
South African Exchanges Still Studying IFWG Position Paper
At the same time, the said report indicated that South African crypto exchanges are still carefully reading the IFWG’s position paper, even though others state they want to assist regulators provide the suitable regulatory frameworks.
For example, the CEO of Altcoin Trader Richard de Sousa, is cited by Mybroadband saying that his firm is observing the papers the IFWG published and is “considering many things.”
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Then again, The GM for Luno Africa, Marius Reitz informed the same publication that in spite of the fact that his company “is not against clear and market-conducive regulations for the crypto industry” it is currently unsure “how this [new regulation] will be implemented and regulated.”
The Boss of Luno in Africa also added what he perceived as the merits of a staged implementation of regulations beyond the early imposition of onerous regulations.
“A phased approach to implementing regulation for the crypto industry in South Africa — beginning with mandatory AML/KYC obligations — is a sensible approach which will assist in mitigating any potential negative implications of regulation.”
Fresh Agenda Against Cryptos
According to Bitcoin.com News, South Africa’s IFWG made available to the public a position paper on crypto assets that summons their regulation. Subsequent to the release of the position paper, notification of financial institutions preventing clients from purchasing cryptocurrencies with credit cards soon surfaced.
The effort to restrict local exchanges from sending cryptocurrencies to platforms abroad seems to be the recent indicator that South African regulators now want to be dominant in privately issued digital currencies.
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Nonetheless, by menacing to sanction individuals and bodies that transfer crypto assets that was possessed locally to exchanges in abroad, regulators in South Africa are trying to censor cryptocurrency transactions. It’s now left to know if these restrictions are going to suppress crypto use or if it’s going to push traders to operate secretly as Reitz warned.
Do you think that South African regulators will succeed in stopping the transfer of crypto assets to platforms in abroad? Share your thoughts in the comment section.