Bitcoin and other cryptocurrencies continue to surge in popularity across the world. In particular, the United States of America is a country that welcomes the idea of bitcoin, with many people being able to visit places like Independent Reserve (Click here to learn more) to buy some of their own. And, it is only expected to grow from here. Similarly, other developed countries like Australia are also embracing trading in digital currencies. The National Australia Bank (NAB), for instance, was the most Bitcoin-friendly bank in Australia with its team working with Bitcoin businesses. However, due to certain security concerns, the NAB cryptocurrency transaction is no longer possible as it abolished bitcoin accounts and trading activities. There are, of course, other safe and fast ways of acquiring bitcoin in Australia using NAB bank accounts (Swyftx, for example). That being said, many eyes have turned to South Africa in recent times. This is because it has been emerging that more and more SA citizens are using crypto for financial stability, amongst other reasons.
However, as we know it in South Africa, crypto may not stay the same way for too long. There is widespread talk regarding opening things up further to citizens. However, the reverse lobby is working to protect BTC for people by securing it with regulation.
Let’s consider a few of the different ways in which BTC and other crypto are changing in SA.
A New ETF May Be on The Way
Bitcoin has become a phenomenon in SA to such an extent that it’s leading to new ETF applications. While there are plenty of people in South Africa looking for ways to use their Bitcoins, investors are acting likewise.
News earlier this spring emerged to suggest that DCX Capital would be approaching the Johannesburg Stock Exchange. The lucrative proposal in the offing is that DXC launch a BTC based ETF on the Exchange.
DCX is already in charge of the EC10 index, which helps people in SA invest in a variety of crypto. However, there appear to be intentions emerging to push for ETF status.
This, arguably, could open things up to more traders and more interested citizens. Cryptocurrency is widely open to SA citizens right now, but a lack of regulation has set some on edge. Tying up crypto assets in a reputedly safer fund may be a strong step forward.
Security is a Concern
However, in particular, with BTC becoming such a big draw in South Africa, officials are growing concerned. Specifically, it is the Prudential Authority who is pushing, amongst others, to regulate crypto to some extent.
The argument is that scams and money laundering are on the rise. Officials are therefore considering overseeing crypto as a ‘financial product’. It is this definition, Prudential Authority CEO Kuben Naidoo argues, that will help to secure crypto to make it safer.
It is argued that many banks and financial authorities enjoy regulation for safety. However, BTC and other crypto were born out of a desire to break free from red tape and bureaucracy. Concerns regarding fiat money and its trading include time taken to transfer, as well as additional fees.
Many people in South Africa feel liberated with crypto because it is relatively quick to transfer. It is also free from regulations and box-ticking that would otherwise slow down business.
What’s Next?
Cryptocurrency in South Africa and across the continent will likely continue to grow in popularity. However, concerns over security and scams will continue to pull people in various directions.
Many hope that regulatory practice does not swoop in to ‘ruin’ crypto as SA traders know it. Regulation arguers are poised to act within months if approved. However – much could happen in the meantime!
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