South Africa Declares Cryptocurrencies Financial Products

• South Africa has declared all crypto assets as financial products as the country maintains a favourable stance on digital assets
• The country recently declared Bitcoin and other cryptocurrency assets as digital representations of value
• It also classified cryptocurrencies as digital assets that can be traded, stored or used for purchases

South Africa moved a few steps closer to crypto adoption when it designated crypto assets as financial assets on Wednesday, October 19, 2022, to enable regulators to monitor the crypto market and protect consumers in the industry.

Business Insider reports that a new notice by the Financial Sector defined crypt assets as a digital representation of value not issued by a central bank which can be traded, transferred or stored electronically for payment, investment and other utility forms.

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Declaration would enable effective monitoring

The order is effective immediately and comes as governments worldwide are moving to regulate cryptos more rigidly and protect users from rough digital coins and scammers.

The order would bring digital assets under the watch of South Africa’s regulators.

General Manager for Africa at Luno, the crypto trading platform Marius Reitz, told BusinessTech that licensing needs that will come from the categorization will drive high standards in the industry, especially concerning consumer protection, with the potential for investors being able to identify providers that meet regulatory requirements.

Experts become optimistic

Crypto assets were defined as a digital representation of value.

Reitz said:

“Another key benefit is that it should formally allow financial advisers to advise their clients on crypto investments,” he added.

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The rainbow nation ranks 30th globally for crypto adoption, Chainalysis’ 2022 Global Crypto Adoption Index published in September said.

About 10-13 per cent of South Africans hold cryptos.

The Central African Republic adopts Bitcoin as legal tender, after El Salvador

The Central African Republic has adopted bitcoin as an official currency, following El Salvador's steps, the first country in the world to do so.

The lawmakers in the crisis-ridden country voted unanimously to legalise bitcoin and other cryptos, a statement from the country’s presidency said.

The cryptocurrency will become the country’s legal tender alongside the Central African CFA Franc, a regional currency for some countries in Africa.

Source: Legit.ng