JOHANNESBURG (BLOOMBERG) – South Africa is moving with more urgency to stiffen oversight of cryptocurrency assets after a proliferation of scams.
A new regulatory timeline foresees finalising a framework in three to six months, after the publication of proposals earlier in June that requires public comment before approval, according to Mr Kuben Naidoo, chief executive officer of South Africa’s banking regulator known as the Prudential Authority.
“We are trying to put in place the regulatory framework quickly,” said Mr Naidoo, who’s also a deputy governor of the South African central bank. “Defining this as a financial product and then developing the regulatory framework is important.”
The approach that’s taking shape means tougher rules could be imminent this year after a jolt of scandals that most recently included a suspected Ponzi scheme, which resulted in the disappearance of an estimated US$3.6 billion (S$4.8 billion) in bitcoin.