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South Africa's Regulatory Uncertainty Driving Away Crypto Startups: Report
A looming regulatory clampdown following a major Ponzi scheme's collapse is already prompting some exchanges to flee abroad.
Fear of a regulatory clampdown in South Africa is driving cryptocurrency startups to look to more friendly environments.
STORY CONTINUES BELOW
- Some crypto exchanges have already made the decision to go, Bloomberg reported Monday.
- For example, Revix is shifting its head office to the U.K. and also planning a Germany-based location.
- The Financial Sector Conduct Authority (FSCA) is seeking to regulate cryptocurrencies with more power to prosecute fraudsters, Head of Enforcement Brandon Topham told Bloomberg in January.
- The looming changes come after the collapse of Mirror Trading Investments (MTI) in December 2020, which had collected over 23,000 bitcoin from investors before its CEO allegedly fled to Brazil.
- Regulators will focus on better protection for consumers rather than businesses, according to Topham, who added more proposals are expected in coming months.
- Until now, authorities in South Africa have been "incredibly slow in terms of regulation," according to Sean Sanders, CEO of Cape Town-based Revix.
- This stymies growth as customers "arrive at our platform with skepticism," he said.
See also: South Africa’s Tax Agency Is Clamping Down on Crypto Users: Report
Jamie Crawley
Jamie has been part of CoinDesk's news team since February 2021, focusing on breaking news, Bitcoin tech and protocols and crypto VC. He holds BTC, ETH and DOGE.
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Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access
A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.
What to know:
- Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
- JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
- The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
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