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by Priyeshu Garg South Africa is the latest country to try and classify cryptocurrencies as it looks to regulate the industry and generate income tax.
According to the country’s Central Bank, digital currencies such as bitcoin (BTC) are mere “cyber-tokens” that don’t meet the criteria to be categorized as money. According to Francois Groepe, the Reserve Bank Deputy Governor, it is wrong to use the term “cryptocurrency” because virtual currencies do not function as a stable unit of value.
The sentiments come at a time when regulators around the world are trying to find ways to regulate digital currencies despite uncertainty as to how best to classify them. (Source: African Currency Forum) The Reserve Bank of South Africa has formed a FinTech unit that is to carry out a study on cryptocurrencies and try to come up with an appropriate policy framework as well as a regulatory regime.
The unit is tasked with the responsibility of establishing whether cryptocurrencies comply with the relevant financial surveillance or exchange-control regulations. The Central Bank has since issued guidance regarding its position when it comes to the purchase and transfer of cryptocurrencies.
According to the regulator, it is wrong for people to buy and sell crypto assets using international exchanges. In that regard, South Africans are only allowed to buy cryptocurrencies using a discretionary allowance of R1 million ( $14,757.60) or individual foreign investment of R10 Million ( $14,7576.00) per year. Read more from btcmanager.com…
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