- Major South African cryptocurrency exchanges such as Luno and VALR are ready to adopt new crypto rules.
- Some of the major crypto exchanges in South Africa have already complied with the KYC rules along with the necessary measures against money laundering (AML) and anti-terrorism financing (CTF).
Crypto exchanges in South Africa have expanded their support for regulatory measures to treat cryptocurrencies as financial assets. Regulatory rules in the field of crypto will enter into force within the next 18 months. Crypto exchanges suggested this as a positive development that was driving crypto adoption in the country.
Earlier this week, the South African Reserve Bank (SARB) announced that it would bring regulatory rules to the crypto industry in early 2023. The Central Bank of South Africa expressed its willingness to treat cryptocurrencies as financial assets and not as currencies. South African Reserve Bank Deputy Governor Kuben Chetty said:
That is it by all definitions [cryptocurrencies]not a currency, it is an asset. It is something that is exchanged, it is something that is created. Some have support, some do not. Some may have real underlying economic activity.
Cryptoadoption in South Africa has grown at a significant rate. Over 6 million South Africans have currently invested in the crypto space. The recent SARB ruling will bring more regulatory clarity to crypto companies operating in South Africa. This will further help them operate in a safe environment that ensures customer safety.
Here’s what the best SA crypto exchanges have to say
Crypto publication CoinTelegraph spoke with some of the major exchanges operating in South Africa. Marius Reitz, CEO of South Africa’s leading crypto exchange, Luno, said he welcomed developments in crypto rules. Reitz added that this will create a more secure environment for crypto users in the country. It is added:
It will require Crypto-Asset Service Providers (CASPs) to obtain FSP licenses, and it will be easier for the public to identify a reliable and licensed platform. This will create an entry barrier for these platforms without taking into account the security of funds and customer information.
In addition to South Africa, Luno operates in a number of global markets such as Malaysia and Singapore. Reitz said Luno had already worked on anticipating legislative changes in South Africa. In addition, he said compliance with the new regulatory parameters would not require them to make major changes to their processes. Crypt Exchange Luno is already performing KYC checks. In addition, he also implemented the necessary AML and CTF measures.
Another South African cryptocurrency exchange VALR is a very popular and trusted platform for crypto trading. Like Luno, VALR also has KYC checks as well as AML and CTF metrics. In addition, it also has its own risk management and compliance program. CEO Farzam Ehsani told CoinTelegraph that cryptocurrency will not create any barriers to the exchange. He stated that the entire crypto industry would fall under the Financial Intelligence Center, adding further:
VALR is already registered with the Financial Intelligence Center, and we have been working with FIC for many years, so any formal set of rules for this requirement will only formalize what VALR already has in place.