South African Reserve Bank Develops Cryptocurrency Regulations.
Cointime (April 4) — The South African Reserve Bank (SARB) sets up a special department to monitor the development of cryptocurrency and financial technology. The bank hopes this department could inform and better future cryptocurrency regulation.
Bridget King, the bank’s banking director, said, SARB is most concerned with preventing systemic market risk and ensuring that the country financial system remains sound, efficient, and competitive while embracing the developments in FinTech and cryptocurrency.
This new department will ensure cryptocurrency is not over-regulate and it will remain flexible.
According to bitcoin.com, South Africa has been the among the slowest advanced economy to develop cryptocurrency regulations. And as Arif Ismail told MyBroadband, the SARB would not implement the regulation on bitcoins without following a consultative process.
However, King explained,
“Regulating it prematurely could throttle the growth and innovation of the industry.In addition, if laws are drafted based on existing technology, which is still in its growth phase, there is a risk that the technology may have moved so much by the time the legislation is enacted, that the legislation is obsolete or requires updating almost immediately to align with the latest technology. ”
Executive editor： Angel