South Africa Will Begin Testing Bitcoin and Crypto Regulations
South African Reserve Bank has announced that it will test the cryptocurrency rules. Loyary Gamaroff, CEO of Bankymoon, has revealed that his company has been selected as the first business to test the new regulations.
South Africa is taking significant steps toward consolidating a regulatory framework for bitcoin and cryptocurrencies. The Reserve Bank of South Africa (SARB) has announced that it will begin testing a number of regulations regarding virtual currencies.
South Africa has been among the slowest of advanced economies to begin developing a legal apparatus for cryptocurrencies, which raises criticism for not accepting virtual currencies and blockchain technology before.
Loerien Gamaroff, CEO of Blockchain’s services company, Bankymoon, revealed that his company will be subject to a trial of SARB’s preliminary regulations. Gamaroff confirmed that it has had constant contact with the Reserve Bank of South Africa in the discussion of the safety deposit box of the regulations and has held several seminars related to possible cases of use of cryptocurrencies within the South African economy. Gamaroff also revealed his involvement in government-led research on alternative cryptocurrencies.
“All we are doing at this point is seeing how far this relationship will go on within this sandbox,” Gamaroff stated. “This is because the Reserve Bank is very hesitant to give a stamp of approval on anything that comes out. The sandbox will only be Bitcoin-focused during this initial phase, but is focused on applying broad regulations to all cryptocurrencies,” he said.
Gamaroff has expressed his belief that regulations are ultimately positive for cryptography, and it is vital to achieve legitimacy for the use of virtual currency in South Africa. “I think the regulation will move things along and make people on the street comfortable with Bitcoin,” Gamaroff said.
In February, SARB announced its intentions to develop a virtual national currency that would be based on distributed accounting technology. SARB also outlined plans for conducting research on the feasibility of cryptocurrency and the adoption of Blockchain in South Africa.
The announcements come amid the growing acceptance of cryptocurrencies technology in South Africa. Michael Jordan, the former First National Bank CEO, recently declared his support for the cryptourrencies, and the belief that one day they will rival fiduciary coins. The volume of P2P operations has also experienced steady growth in recent months.
Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and/or services. This press release is for informational purposes only. Information does not constitute an investment advice or an offer to invest.