South African stock exchanges support regulatory decisions to treat crypto as a financial asset

• Top South African cryptocurrency exchanges such as Luno and VALR are ready to embrace new cryptocurrency regulations.
• Some of the best crypto exchanges in South Africa have already followed the KYC rules along with the necessary measures against money laundering (AML) and Counter-Terrorist Financing (CTF).

Crypto exchanges in South Africa have expanded their support for regulatory measures to treat cryptocurrencies as financial assets. The regulatory rules in the crypto area will take effect over the next 18 months. Crypto exchanges see this as a positive development that will increase 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 by early 2023. The Central Bank of South Africa expressed a desire to treat cryptocurrencies as financial assets and not as currencies. South African Reserve Bank Deputy Governor Kuben Chetty said:

By all definitions it is [cryptocurrencies]not a currency, it is a resource. It is something that is negotiable, it is something that is created. Some have support, others do not. Some may have a genuine underlying, real economic activity.

Cryptoadoption in South Africa has grown at a significant pace. More than 6 million South Africans have currently invested in the crypto space. The recent decision from SARB will provide more regulatory clarity for crypto companies operating in South Africa. This will further help them operate in a safe environment that ensures customer safety.

Here is what the best crypto exchanges in SA have to say

The crypto publication CoinTelegraph spoke to some of the best exchanges operating in South Africa. Marius Reitz, general manager of South Africa’s best crypto exchange Luno, said that he welcomes the transfer of crypto regulations. Reitz added that it will create a safer environment for crypto users in the country. He added:

This will require crypto asset service providers (CASPs) to obtain FSP licenses and will make it easier for the public to identify a reliable and licensed platform. It will create an entry barrier for these platforms without regard to the security of customer funds and customer information.

Beyond South Africa, Luno operates in a number of global markets such as Malaysia and Singapore. Reitz said that Luno has already worked to prevent regulatory changes in SA. Furthermore, he said that compliance with new regulatory parameters will not require that they have any major change in the processes. Crypt exchange Luno already performs KYC checks. In addition, it has also initiated necessary AML and CTF measures.

Another South African cryptocurrency exchange VALR is a very popular and reliable platform for crypto trading. Like Luno, VALR also has KYC checks together with AML and CTF measures. In addition, it also has its own risk management and compliance program. CEO Farzam Ehsani told CoinTelegraph that cryptocurrencies will not create any barriers for the stock market. He said that the entire crypto industry will fall under the Financial Intelligence Center and adds:

VALR is already registered with the Financial Intelligence Center and we have worked with FIC for many years, so any official regulations in this connection will only formalize what VALR already has in place.