Although the crypto industry started out as an entity free from the shackles of centralized systems, regulation became essential. the elevated hack and scams along with demand led to the arrival of regulators from all over the world. Because they were not ignored, cryptocurrencies quickly became a topic of interest for government officials. Now the whole world has recognized the industry through regulation. Australia and South Africa may soon witness laws protecting crypto investors.
The world seems to be dealing with increased inflation in certain parts. The rest have had to deal with an economic crisis themselves. Sri Lanka and Ecuador have faced one of their biggest economic concerns. In the midst of this, the common man and prominent institutions have invaded the world of crypto. That’s why countries around the world are forced to come up with better ones regulations for the same.
The Financial Planning Association of Australia [FPA] seemed inclined to regulate crypto exchanges rather than cryptocurrencies. The Australian financial watchdog appeared to be digging into the idea of a ‘crypto rulebook’. Ben Marshan, head of policy, strategy and innovation at FPA, said in a submission to the Treasury:
“The regulation of a financial product or financial service should not depend on the technology underlying the asset. […] it would be virtually impossible to regulate the product because it is so decentralized, they are in all kinds of foreign jurisdictions.”
The FPA plans to focus on formulating an “alternative, duplicate regulatory regime” that would regulate core purchase and ownership of financial assets for both retail and wholesale investors. In addition, for exchanges, the existing licenses for financial services should exist along with a separate type of license.
Furthermore, Marshan also emphasized regulations aimed at consumer protection.
Crypto has now reached the South African Reserve Bank
It was recently revealed that more than 13 percent of the South African population possess cryptocurrencies. It seems that the increased interest in crypto in the region has prompted the government to look into it. Earlier this week, the deputy governor of the South African Reserve Bank [SARB] confirmed that it believes cryptocurrency as a financial asset.
Kuben Naidoo revealed that SARB’s changed perspective on crypto would prompt them to roll out a framework that regulates the same. Speaking at a recent webinar Naidoo said,
“Our view has changed and we now consider [cryptocurrency] as a financial asset and we hope to regulate it as a financial asset. A lot of money has poured in and it is necessary to regulate it and bring it into the mainstream.”
A regulatory framework overseeing the crypto verse is expected to be rolled out in the next 12 to 18 months.
In addition, SARB’s deputy governor also pointed out that it had received directions from other countries, such as Australia, Singapore and the United Kingdom.
The South African bank is said to be introducing laws addressing money laundering and terrorist financing. Again, exchanges would be at the forefront of this.
The Bahamas next on the list?
The Prime Minister of The Bahamas Philip Davis announced that crypto was the way forward. Addressing the various issues related to climate change, along with GDP, Davis said,
“[..] for example, we recognized the space of crypto, recognized that it is here to stay and that the 20 percent of GDP that I had lost through the intervention of the industrialized world was the way to replace it. So I went after crypto in the financial space, and then I coupled that with one of the other consequential problems facing our small island developing states, which is the impacts of climate change.
It looks like crypto is here to stay and countries have been preparing for adoption to soar further.