According to Deputy Governor Kuben Naidoo, the South African Reserve Bank (SARB) is prepared to establish new regulations regarding cryptocurrency trading in the country within the next 12 to 18 months.

Speaking in PSG’s most recent Suppose Large webinar, Naidoo said that South Africa was largely on par with different international locations in relation to cryptocurrency regulation, with the preliminary hype around digital currencies and the know-how dying down in the latest instances.

He added that almost all central banks all over the world at the moment are centered on regulating the broader crypto surroundings instead of studying it and seeing how it may be used. Furthermore, it is necessary to separate the real technological developments and the potential enhancements to the funds’ system from the hype.

He said, “We’re not intent on regulating it as foreign money as you may not actually stroll into a store and use it to purchase one thing. As a substitute, our view has modified to regulating (cryptocurrencies) as a monetary asset. There’s a want to manage it and convey it into the mainstream, however in a manner that balances the hype and with the investor safety that must be there.”

Naidoo also stated that the first step is to ensure that cryptocurrencies are declared as monetary products so that they may be monitored for cash laundering, tax evasion, and terrorist financing activities and come under the jurisdiction of the Monetary Intelligence Centre.

The SARB also intends to create a regulatory framework for South African exchanges that will support cryptocurrency itemizing. This framework will include traditional banking laws including Know Your Buyer (KYC) regulations and alternative management laws.