The South African Reserve Bank (SARB) has said it will assess the benefits and risks of cryptocurrencies.
The statement said the document was jointly developed with a number of the country’s government agencies.
In the document, titled “Consultation Paper on Policy Proposals for Crypto Assets,” the government of South Africa clarifies its stand on cryptocurrency development in the country, saying it neither wishes to ban crypto trading or crypto payments at the moment.
According to the consultation paper, all crypto asset trading platforms, as well as custodial services, payment service providers, and crypto ATMs, should be mandated to register with the the Intergovernmental FinTech Working Group (IFWG).
This means that, crypto-related businesses will have to comply with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) requirements of the Financial Intelligence Centre Act.
The consultation paper was jointly developed by several major state agencies, such as Financial Intelligence Centre (FIC), Financial Sector Conduct Authority (FSCA), National Treasury (NT), South African Revenue Service (SARS), and the SARB, the central bank of South Africa.
In early January, the South African government also launched a regulatory working group dedicated to cryptocurrencies and blockchain. The group however, is expected to release a final research paper on the industry over the course of 2019, the country’s Minister of Finance Tito Mboweni hinted CoinTelegraph.
More, recall that in June 2018, the SARB confirmed it had successfully tested its Proof-of-Concept (PoC) for an interbank payment system that tokenizes fiat using Quorum, an Ethereum-based (ETH) private blockchain.