Different countries around the world are developing and implementing different control measures to mitigate any risk that nay come with blockchain and cryptocurrency market. Evidently, this is not an easy task to accomplish owing to the fact that strong and strict regulations may end up harming a very profitable industry than do good. South Africa has announced that it will be establishing a self-regulatory agency in a move to create a better platform for the spread of cryptocurrencies in the country.
South Africa’s Self-Regulatory Agency
The South African Central Bank (SARB) has announced plans to set up a special unit which will be tasked with monitoring and controlling blockchain and cryptocurrency developments. Currently, the SARB does not dealings in cryptocurrencies but is developing mechanisms aimed at reducing risk, protecting investors plus other regulatory framework.
According to SARB’s banking practice director Bridget King, cryptocurrencies should not be subjected to premature regulations due to that fact that such regulations may end up hurting the industry. It should be noted that blockchain and cryptocurrencies have the potential to change the manner in which enterprises do their business by improving transparency, efficiency as well as quality of products. Additionally, King noted that the laws developed would have to be revised and modified from time to time so as they remain in agreement with the new technological developments which are taking place very fast in the industry. King says the laws which are being developed are based on current technologies which may change even before the laws come into effect. In such cases, the law will be rendered obsolete and will have to be modified to align with the new technology.
South Africa has a very active cryptocurrency market. The county has a society that has been full of support for digital currencies and several crypto and blockchain enterprises have operations in Africa’s second largest economy. In March the fourth consecutive blockchain conference was held in Johannesburg.
On its official website, the conference noted that blockchain technology offers several innovations and advancements in several technological fields. It further adds that the decentralized, open-source and distributed nature of blockchain helps to unlock new opportunities in Africa.