Crypto policies won’t be affected by South African elections, insiders say

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As a researcher with a background in finance and experience in following the cryptocurrency scene in South Africa, I find the consensus among industry insiders that the upcoming elections will not significantly impact the nation’s cryptocurrency agenda quite reassuring. This sentiment is shared by Mpumelelo Ndamane, CEO of Nuud Money, and John McCarthy, general counsel for global regulatory affairs at Fireblocks.

Based on what experts in the industry are saying, the forthcoming South African elections on May 29 will have no bearing on the country’s plans regarding cryptocurrencies.

Mpumulelo Ndamane, the CEO of South African cryptocurrency wallet provider Nuud Money, stated that the upcoming elections would not involve the use of cryptocurrencies.

Over the last three decades, we have maintained a consistent approach in keeping the South African Reserve Bank and Financial Sector Conduct Authority free from political influence. This stability will not impact our cryptocurrency regulations.

From my perspective as a crypto investor, John McCarthy, Fireblocks’ general counsel for global regulatory affairs, has mentioned that the majority of advancements in South Africa’s digital asset sector have been focused on addressing issues that are not politically charged. In agreement with this viewpoint expressed by Ndamane, McCarthy emphasized that the apolitical nature of these problems has led to a comparable approach.

He further mentioned that it has gone through a neutral, intergovernmental committee for review.

I’ve previously shared news from crypto.news that South Africa’s Financial Sector Conduct Authority (FSCA) intends to grant licenses to approximately 60 digital asset platforms. Applications from these platforms are due by November 30th.

In 2022, regulators expanded the Financial Advisory and Intermediary Services Act to encompass cryptocurrencies, leading to the establishment of a licensing framework – a pivotal move in financial regulation. At present, VALR, Luno, and Zignaly are among the three exchanges that have been granted licenses within the nation.

Maurice Crespi, a partner at South Africa’s Schindlers Attorneys, views this as a progressive strategy to manage the digital asset sector. In his statement, Crespi emphasizes that this action aligns with international trends and recognizes the increasing importance of blockchain technology in modern finance.

Previously, South Africa’s National Treasury disclosed that its Intergovernmental Fintech Working Group was investigating the effects of using stablecoins and tokenization within the country’s financial system. The group is scheduled to submit their findings to the government by December 2024.

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2024-04-29 13:28