South Africa Set to Regulate Cryptocurrencies

Governments and organizations are more aware and concerned about the potential of cryptocurrencies and blockchain technology than ever. Reports indicate that South Africa is working on policies that will enable it to regulate cryptocurrencies.

Unlike other countries that perceive cryptocurrencies as a threat to the current economy and value of their fiat currencies, South Africa and many developed economies have shown tremendous support for digital currencies. They are willing to embrace the blockchain technology to enhance their local economy.

South Africa Government Plans to Regulate Digital Currencies

The South Africa government has already set up a regulatory working group whose primary objective is to evaluate the risks and potential of cryptocurrencies. Their report will be instrumental in the creation of regulations and policies. Tito Mboweni, the current finance minister recently told the press that this group is in the final stages of releasing a report that will give the government a clearer understanding of the industry.

South Africa cryptocurrency industry

Tito also said that the South African Revenue Service would shortly implement new options for digital currencies in their tax forms. This move will make it possible for cryptocurrency investors and traders to use their digital currencies to pay taxes.

Majority of South Africans Are Conversant with Cryptocurrencies

Adoption of cryptocurrencies and blockchain technology in Africa has been low despite numerous incentives offered by the various companies. However, South Africa is different from other countries in the continent as most of the people are aware of cryptocurrencies and have already started to invest in them.

Research indicates that most of them perceive digital currencies such as Bitcoin as a way of positively accruing wealth. The report showed that 38% of the people polled wished they had invested their fiat currency in digital currencies earlier and 70% of the respondents stated that they believe one can make a lot of money by investing in these currencies.

South Africa cryptocurrency industry

Cryptocurrency exchanges are also aware of this positive change in tide, and they are considering setting up camp in the country. Proper regulations will significantly encourage them to go ahead with the plans and promote adoption of the digital currencies.

One of the exchange platforms that is rumoured to be in the process of launching in South Africa is VALR. VALR will collaborate with Bittrex, another well-known cryptocurrency exchange platform that relies on artificial intelligence (AI) and machine learning to enhance identification. Bill Shihara, Bittrex CEO, recently told the press that the company firmly believes that collaborating with VALR will give them an opportunity to increase adoption of blockchain technology in not only South Africa but also other new markets. Learn how to invest in Bitcoin here.