The South African authorities are dealing with a new financial crisis in the form of increasing crypto-related scams. The nation has proposed a new regulatory timeline to ensure that more stringent rules are implemented in the region. The said state-sponsored proposal would be in effect in a matter of 3-6 months.
The chief executive of the South African Bank regulator agency, Kuben Naidoo, claimed that the regulatory charter requires public feedback and comment to become part of the legislation. He further told the media that the mission of the regulators is to treat cryptocurrencies as a legitimate financial product.
Since last year, there have been increased incidences of scandals and fraud schemes based on cryptocurrencies. It has been reported that in a single sweep, a whopping amount of $3.6 billion was cleared from the market in Bitcoin via an elaborate Ponzi scheme.
Naidoo, who is also the Governor of the central bank, claims that without the presence of real-life-based crypto regulations, the law enforcement agencies are unable to take prompt action against such complaints. However, if cryptocurrencies are treated as a financial product, the court and legislators will make a case and put the threat actors on trial.
SA Regulators Want to Rule in Favor of KYC and AML Protocols to Secure the Citizens Against Threats
The inherent nature of cryptocurrencies is that they can operate without the intervention of any centralized authority. The public nature of cryptocurrencies allows any person from any part of the world to trade these currencies without revealing their real identification.
However, the regulators in South Africa are preparing to make all the crypto enterprises in the region become KYC and AML complaints. Ronald Lamola, Minister of Justice, claimed in a public speech that it is important for the government to watch the crypto markets closely. The justice department claimed back almost $28.1 million last year that were stuck in cases like money laundering and financial terrorism aid.