In a swift attempt to fight the rapidly increasing crypto scams in South Africa, the central bank is rushing to finalize its regulatory framework. Kuben Naidoo, the Deputy Governor of the South African Reserve Bank (SARB) said, “We are trying to put in place the regulatory framework quickly. Our view is that crypto is a financial product and should be regulated as a financial product.”
Following what Naidoo said, the new timeline will see SARB complete the regulatory framework in three to six months. Behold, this could mean that strict rules are imminent for stakeholders in South Africa’s crypto industry.
“Now we are defining this as a financial product and if there are scams where the public is being duped, given incorrect or false information, it is certainly a market conduct issue that should be taken seriously,” he added. “We are of the view that cryptocurrencies are risky and we want to ensure that the financial sector is aware of those risks and pricing for those risks properly.”