Crypto companies in South Africa are urging the law makers to provide clear regulations else they would move abroad. Sean Sanders, CEO of Revix said that he would relocate his company’s head office to the UK if the relevant authorities fail to provide clear regulatory guidelines. He said the South African authorities were “incredibly slow” in addressing the issue.
According to Sander, customers tend to look at these crypto platforms with some level of skepticism due to the lack of clear regulations governing the industry. He added that it was sheer laziness to apply securities regulations that are centuries old to cryptocurrency which are modern day inventions.
Opaque Crypto Regulation Leads to High Rate of Crypto Crimes
The Dechained had earlier reported that Financial Sector Conduct Authority (FSCA) had proposed to regulate all the digital currencies operating in South Africa. The FSCA stated that this was borne out of growing interest in digital assets and the possibility that they could be exploited for fraudulent purposes. Previous efforts to regulate the crypto market had failed miserably, leading to the proliferation of crypto frauds. FSCA believes that the rise in crypto related crimes is down to the lack of regulations.
South Africa’s FSCA had reported a spike in crypto scams amid the bullish run in the crypto market. Recall that in December 2020, Mirror Trading International (MTI) went into provisional liquidation after it had received over 23,000 BTC from unsuspecting investors. All these are the cogs in the wheel of crypto adoption in South Africa. Until the authorities come up with clear regulatory guidelines, crypto companies may make good their plan to move abroad.