LISTEN: SARB set to declare crypto a financial product
The South African Reserve Bank is working around the clock to finalise rules and requirements that will see cryptocurrency listed on local exchange.
The central bank hopes to have the regulations in place within the next 12 to 18 months.
This was confirmed by the reserve bank deputy governor Kuben Naidoo at the PSG Think Big series 2022 webinar on Tuesday.
Naidoo said while there was a reluctance to get involved in crypto, the Reserve Bank has finally decided to regulate cryptocurrency as a financial product.
This comes as many young South Africans are joining digital currency exchanges.
Naidoo admitted that crypto assets are volatile but said regulating it will assist in eliminating scams.
"The Minister of Finance Enoch Godongwana first needs to amend schedule 1 of the Financial Intelligence Centre Act to declare this as a financial product.
“The Financial Sector Conduct Authority would have to develop the regulatory framework around the licencing exchanges, and as the reserve bank we are busy, and we are quite close to finalising the exchange rules and requirements.
"I am hoping that we can do this step by step, but once the minister amend schedule 1 of the FIC that we can begin to move, it will probably take us around 12 to 18 months to get all our ducks in a row and everything in place," added Naidoo.
Listen to Kuben Naidoo below:
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