SA’s Intergovernmental Fintech Working Group releases position paper on crypto assets

The SA government’s Intergovernmental Fintech Working Group (IFWG) has drafted a policy position paper on crypto assets, the SA Reserve Bank said in a statement yesterday.

The IFWG is a group of SA financial sector regulators whose members include the Financial Intelligence Centre, Financial Sector Conduct Authority, National Credit Regulator, National Treasury, South African Revenue Service and South African Reserve Bank.

The Reserve Bank said the position paper aims to provide specific recommendations for the development of a regulatory framework for crypto assets, including suggestions on the required regulatory changes to be implemented.

The IFWG’s position paper aims to provide recommendations for the development of a regulatory framework for crypto assets

It said the position paper’s recommendations, among other things, include:

• The implementation of an anti-money laundering and counter-terrorism financing regime
• A licensing and supervisory regime from a conduct of business perspective.
• A regulatory regime for the monitoring of cross-border financial flows.

This position paper builds on a consultation paper on crypto assets that was first issued by the IFWG on January last year (see this story).

The consultation paper highlighted the perceived benefits and risks of crypto asset-related activities, as well as policy proposals for a regulatory framework.

It also provided an opportunity for all industry participants and stakeholders to submit comments on the proposals contained in the paper. The comments received were carefully considered in compiling the position paper released on 14 April.

The Reserve Bank called on members of the public to provide comments on the position paper by 15 May. Comments can be submitted by email to innovation@ifwg.co.za.

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