Cryptocurrency to be regulated in South Africa by the end of 2022: Luno

Crypto regulation is imminent in South Africa with formal guidelines expected to be introduced before the end of the year, say experts at South Africa’s largest cryptocurrency exchange Luno, as reported by BusinessTech.

“Globally, we have seen moves to regulate crypto and we anticipate the introduction of a clear South African regulatory regime likely by the end of 2022. Regulatory certainty will have a host of positive spin-offs for the crypto sector,” said Marius Reitz, Luno’s general manager for Africa.

In the US, where regulation allows for entry into crypto, firms like Fidelity, Goldman Sachs and JP Morgan are entering the crypto market and the Proshare Bitcoin ETF – the world’s first Bitcoin ETF – saw record inflows into the fund, Reitz said.

In anticipation of local regulations, several asset managers are working behind the scenes to craft crypto products and solutions.

He noted that previous attempts to list a Bitcoin ETF on the local stock exchange have not been successful, but the listing of crypto instruments on the JSE would be a watershed moment that will allow asset managers to enter crypto.

“Regulation will also boost the number of formal partnerships between banks and crypto companies which will facilitate greater crypto adoption.

“Once regulation is finalised, financial advisors will be able to propose crypto products and services to clients. Luno is partnering with such businesses to ensure that customers can enter crypto investments through their trusted financial advisors.”