Even though the crypto industry started out as an entity free from the shackles of centralized systems, regulations became essential. The increased hacks and scams along with the demand prompted the entry of regulators from across the globe. From being disregarded, cryptocurrencies soon became a topic of interest to government officials. Now, the entire globe has been recognizing the industry through regulations. Australia and South Africa may soon witness laws that protect crypto investors.
The world seems to be dealing with increased inflation in certain parts. The rest have been dealing with an economic crisis of their own. Sri Lanka and Ecuador have been facing one of their worst economic concerns. Amidst this, the common man and prominent institutions have been veering into the world of crypto. Therefore, countries across the globe have been forced to come up with better regulations for the same.
The Financial Planning Association of Australia [FPA] seemed to be inclined toward regulating crypto exchanges instead of cryptocurrencies. The Australian financial watchdog seemed to be digging into the idea of a “crypto rule book.” Ben Marshan, the head of policy, strategy, and innovation at FPA said in a submission to the Treasury,
“The regulation of a financial product or service should not depend on the technology which underlies the asset. […] it would be virtually impossible to regulate the product because it’s so decentralized, they’re in all sorts of foreign jurisdictions.”
The FPA intends to focus on formulating an “alternate, duplicate regulatory regime” that would govern the core purchase and holding of a financial asset to both retail as well as wholesale investors. In addition to this, exchanges would have to entail the existing financial service licenses along with a separate kind of license.
Furthermore, Marshan also emphasized regulations that focus on consumer protection.
Crypto has now reached the South African Reserve Bank
It was recently brought to light that over 13 percent of the South African population owns crypto. It seems like the increased interest in crypto in the region has urged the government to look into it. Earlier this week, the deputy governor of the South African Reserve Bank [SARB] affirmed that it views cryptocurrencies as a financial asset.
Kuben Naidoo revealed that SARB’s altered perspective about crypto would prompt them to roll out a framework governing the same. Speaking at a recent webinar Naidoo said,
“Our view has changed and we now regard [cryptocurrency] as a financial asset and we hope to regulate it as a financial asset. There has been a lot of money that has flowed in and there is a need to regulate it and bring it into the mainstream.”
A regulatory framework that oversees the crypto-verse is expected to roll out in the next 12 to 18 months.
Additionally, the deputy governor of SARB also pointed out that it had taken pointers from other countries like Australia, Singapore, and the United Kingdom.
The South African bank would be putting forward laws that address money laundering and financing of terrorism. Once again, exchanges would be at the forefront of this.
The Bahamas next on the list?
The Prime Minister of Bahamas Philip Davis announced that crypto was the way forward. Addressing the various climate change concerns along with its GDP, Davis said,
“[..] we for example recognized the space of crypto, recognized that it’s here to stay and that the 20 percent of GDP that I had lost because of the intervention of the industrialized world, that was the way to replace it. So I went after crypto in the financial space, and then I tied that into one of the other consequential issues that face our small island development states, that is the consequences of climate change.”
It looks like crypto is here to stay and countries have been prepping before adoption elevates further.