Barriers to Cryptocurrencies from South Africa

Barriers to Cryptocurrencies from South Africa

South Africa has also been added to the countries that have banned cryptocurrencies in the world. In the country, which has recently established a financial unit to regulate cryptocurrencies, some banks have started to prevent purchases in international stock markets.

It has been stated that some banks in South Africa, which like many countries, work with CBDC and want to regulate cryptocurrencies due to increasing fraud incidents, to prevent crypto money purchases.

What are the banks in South Africa doing?

According to the news in the local media, some banks have started not to allow the purchase of cryptocurrency with credit cards and debit cards. For example, when trying to purchase cryptocurrencies on Binance with the cards of the Johannesburg-based Absa bank, one of the largest cities in the country, an error code is sent to the customers, and the desired transaction cannot be performed. In the statement made later by Absa, it was stated that these obstacles were made due to the regulation rules of the South African Central Bank.

On the official website of the Central Bank of South Africa, “Current regulations clearly do not allow cross-border payments to buy crypto assets or trading on foreign exchanges. It is not possible for the Financial Audit Department to approve such transactions”.

Regulation is coming gradually.

It is stated that such practices could raise new concerns in the country’s cryptocurrency industry. As it will be remembered, just a few weeks ago, the Financial Industry Executive Authority announced that it will gradually regulate crypto assets.

A department called the “Interstate Fintech Working Group” has also recommended that crypto-asset service providers introduce anti-money laundering rules and monitor cross-border financial flows.

South Africa also announced that it is working on a central bank digital currency (CBDC).

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Caroline Tetra

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