The Central Bank in South Africa sets up a cryptocurrency self-regulation organization
- The SRO to publish own regulations, standards as well as directives.
- Cryptocurrency regulation has to be done at the right stage to avoid stifling innovation.
South Africa is positioning itself as the frontier of cryptocurrency regulation in the entire African continent. The South African Reserve Bank (SARB) is making steps in the digital space by coming up with a special investigative unit that will control the developments in the cryptocurrency industry in the nation. The additional duties of the self-regulatory organization (SRO) will also include the development of proof of concept (PoC) for DLT-based money transfer system among the banks.
The Director of Banking practice at SARB, Bridget King said, “Regulating cryptocurrencies prematurely could have the negative consequence of throttling the growth and innovation of the industry,”
While commenting on the usefulness of the PoC in the DLT- based system, Bridget said that:
“The aim of this project is to gain a practical understanding of DLTs through the development of a PoC in collaboration with the banking industry. The objective of the POC is to replicate interbank clearing and settlement on a DLT which will allow the Sarb and industry to jointly assess the potential benefits and risks of DLTs”
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
