After much anticipation, the South African Reserve Bank (SARB) has finally revealed how the proposed regulatory framework will look like in regards to crypto assets.
While talking on stage during the just concluded Blockchain Africa Conference 2020, Anrich Daseman, Senior Fintech Specialist, SARB, gave clarity on the direction the South African central bank will take on the the issue of crypto assets.
“A digital representation or token of value that is not issued by a central bank, but traded, transferred or stored electronically by natural or legal persons for the purpose of payment, investment, or other form of utility for the user and applies cryptography in the underlying technology.”
The SARB’s IFWG (Intergovernmental Fintech Working Group) is currently focusing their efforts on three verticals:
AML (Anti-Money Laundering) and terrorism financing
Regulatory arbitrage to resolve gaps in the regulatory framework
The South African Reserve Bank acknowledges that cryptocurrencies are a representation of a token of value not issued by a central bank that can be used for the purpose of payment, investment or other forms of utility, says @anrichd from the SARB.#BAC2020pic.twitter.com/XrhHGZ1Iug
“SARB will not intervene in the relationship between a bank and its client. That decision is up to the individual bank, based on their own risk assessment. Hopefully our upcoming regulatory framework helps the banks make more informed decisions of this nature.”