It was stated by Minister Gigaba that a “balanced approach is being considered” for the development of Bitcoin and Cryptocurrency Regulations.
Gigaba, Finance Minister has revealed several of the government’s intentions and positions in regards to the opposition party of South Africa emerging cryptocurrency economy.
While many institutions are prospects the matter and still to deliver their purposes, Gigaba assertion of that virtual currencies sits out of the government’s regulatory apparatus.
Finance Minister Gigaba said,
“As noted, the relevant authorities continue to monitor and assess the use of virtual currencies and consult with private sector stakeholders in this regard. Further guidance or regulations may be issue, should the need arise”.
“In December 2016, Intergovernmental Fintech Working Group establishes a national treasury together with the SARB, FIC, and FSB. It is to develop a potential and approachable revised policy stance towards fintech. It includes cryptocurrencies to deal with fast emerging fintech matters in the financial sector. Likely, it is robo-advice, alternate payment platforms, crowd funding and machine learning”.
Finance Minister Gigaba, “The Underlying Blockchain Technology Also Has a Lot of Potential”.
For the development of Bitcoin and cryptocurrency regulations, he adds that an “a balanced approach is being taken”. Gigaba specified that the government wishes to develop a juridical apparatus that “is supportive of the objectives of enhanced competition, invention and financial enclosure in the financial sector. It is also reviewing risks related to financial customer protected, financial stability and money laundering. The desire to develop regulations that balance the fostering. It is of innovation with the protection of consumers was echo by South Africa’s opposition party”.
Finance Minister Gigaba also mentioned that government’s intention to explore potential applications for blockchain technology ahead of digital tokens. “The underlying blockchain technology is more potential to be use for purposes other than cryptocurrency. It is a compelling, low-priced and gradually safe way to do transactions. It also to transfer money from one person to another”.
Image source: Johannesburg south Africa