SARB issues new guidelines for local banks to deal with in compliance with cryptocurrencies

South African Central bank issues guidelines asking banks to not restrict clients in crypto related transactions

• Banks to work in compliance with digital assets
• The rule came into existence due to some resistance from the local banks
• South Africans permitted to venture into cryptocurrencies up to a set limit
• The benefits of the new guidelines on the cryptocurrency

South African Banks to work in compliance with digital assets, makes headlines

According to the recent development of news, it is reported that, the banks in South Africa will be allowed to work in compliance with digital assets, especially cryptocurrency. This particularly means that, the customers or the investors, will be able to deal with their monies in digital assets in the local banks and the banks will not be permitted to block the accounts of such customers.

The rule came into existence due to the resistance that the banks gave to the digital asset industry

Previously, the local banks in the country went on to block or close the accounts of the investors who dealt in digital assets, mainly crypto. Due to such a resistance from the local banks, South African Reserve Bank (SARB), issued new guidelines saying, “the banks may act as a conduit for funds” even if the funds are linked to crypto asset providers. The banks are also entitled to down in different roles according to the customers preference, such as purchasing a particular asset on customer’s will or receiving the proceedings in fiat currency for the sale of a particular asset.

The rule basically disregards the opinion of the local banks which had stated that cryptocurrency or digital assets are risky to deal in. According to SARB, the risk should be controlled but the institutions should not completely try and eliminate risk in the process of risk assessment.

The citizens of the country are also put under a limit by the authority to have a check on the digital asset transactions. The set limit for the citizens is at around $59K for cryptocurrencies and $580k for foreign capital allowance

The benefit of the new guidelines for the cryptocurrency industry

It is sure that the guidelines and the liberalization of the policies will help the cryptocurrency industry to flourish and grow in South Africa. On a global front, the industry is already in a bearish phenomenon, and news such as this is going to boost the market to some extent, which is optimistic for the future of the market.

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