South Africa Bars Transfer of Locally Acquired Cryptocurrencies to Overseas Exchanges, Offenders Face Jail Time – Regulation Bitcoin News

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Recent reports from South Africa suggest that the transfer of locally acquired cryptocurrencies to foreign cryptocurrencies will now be subject to the rules on exchange control. Therefore, transactions where an individual buys crypto assets in South Africa and uses them to outsource “any right to capital” will be considered a criminal offense.

Risk of Imprisonment

According to Mybroadband report, this new interpretation of the country’s exchange control rules is contained in the FAQ document recently published by the Intergovernmental Fintech Working Group (IFWG), a body consisting of South Africa’s financial regulators. In the document, regulators explained:

Regular Control Regulation 10 (1) (c) prohibits transactions where capital or the right to capital is, without the permission of the National Treasury, directly or indirectly exported from South Africa.

The IFWG document adds that individuals who violate these regulations receive a financial penalty of more than $ 17,500 (250,000 rand) and possibly up to five years in prison.

South African Exchanges Still Studying IFWG Position

Meanwhile, the same report suggested that South African crypto exchanges are still studying IFWG’s position, while others say they want to help regulators set up the appropriate regulatory frameworks.

For example, Richard de Sousa, the CEO of Altcoin Trader, is quoted by Mybroadband as stating that his company looks at the articles published by the IFWG and “considers many things.”

On the other hand, Marius Reitz, CEO of Luna for Africa, told the same publication that although his company “maintains clear and favorable market regulations for the crypto industry”, it is currently unclear “how this [new regulation] will be implemented and regulated. “

The head of Moon Africa also shared what he sees as the benefits of stage implementation of regulations over the early imposition of load regulations. He explained:

A step-by-step approach to implementing regulation for the crypto industry in South Africa – starting with mandatory AML / KYC obligations – is a prudent approach that will help mitigate any potential negative implications of regulation.

New Push Against Cryptos

As recently reported by Bitcoin.com News, the South African IFWG has published a position on cryptocurrencies that require their regulation. Following the publication of a position paper, reports soon emerged of financial institutions blocking customers from buying cryptocurrencies using credit cards.

The attempt to stop local exchanges from transmitting cryptocurrencies to foreign platforms seems to be the latest sign that South African regulators now want to introduce privately issued digital currencies.

However, by threatening to punish individuals and entities that transfer locally acquired cryptocurrencies to foreign exchanges, South African regulators are trying to censor cryptocurrency transactions. Now it remains to be seen whether these restrictions will stifle crypto use or whether this will force merchants to bury themselves, as Reitz warned.

Do you believe that South African regulators are capable of stopping the transfer of crypto assets to foreign platforms? Tell us what you think in the comments section below.

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