In an effort to refine its approach to the regulation of cryptocurrencies, the South African government has decided to establish a cryptocurrency asset regulatory working group that will play a key role in investigations and research on digital assets and blockchain technology.
The members involved in the working group include the Treasury, Reserve Bank, Financial Intelligence Centre, Financial Sector Conduct Authority and the SA Revenue Service.
It is expected that during the course of 2019, the working group will release a research paper. The research paper is likely to be of great aid to regulators who have have great difficulty in understanding the nuances of cryptocurrencies.
Management of taxation is likely to be significantly impacted by the new found knowledge attained by the working group. Regulation of financial institutions is also likely to change as a result of the increased work of the group. “It is anticipated that, following broad industry comment and participation, the crypto assets regulatory working group will be ready to release a final research paper on the subject during the course of 2019.”