Major shake-up proposed to SA crypto rules

[Bradley Prior]

Major shake-up proposed to SA crypto rules
The Financial Intelligence Centre (FIC) has issued a draft directive requiring crypto platforms in South Africa to identify the parties of a cryptocurrency transaction.

 

[saor]

What we thought crypto would be:


What it's turning out to be:

 

[DapperDanMan]

There are no rules precisely because it is crypto.

 

[hj007]

Funny how they say that it has to do with grey listing, when most countries that are not grey listed have nowhere near these levels of authoritarian restrictions on crypto.

 

[SauRoNZA]

Funny how they say that it has to do with grey listing, when most countries that are not grey listed have nowhere near these levels of authoritarian restrictions on crypto.

Yeah…maybe do some research before mouthing off about this.

Regulation is quite hectic in many countries where there are crypto exchanges especially in the east.

Money laundering measures being the biggest amongst them which is part and parcel of identifying where it is going.

KYC is standard across the board on every legitimate exchange worth their salt for this very reason.

 

[Swa]

Clueless people in charge. All because of our politicians. What's to stop me from just transferring to my wallet and then claiming the counterparty is me before transferring it out again.

Funny how they say that it has to do with grey listing, when most countries that are not grey listed have nowhere near these levels of authoritarian restrictions on crypto.

Take a look when we were grey listed and when we started supporting Russia.

 

[Swa]

Yeah…maybe do some research before mouthing off about this.

Regulation is quite hectic in many countries where there are crypto exchanges especially in the east.

Money laundering measures being the biggest amongst them which is part and parcel of identifying where it is going.

KYC is standard across the board on every legitimate exchange worth their salt for this very reason.

Most crypto exchanges don't have these rules.

 

[SauRoNZA]

Most crypto exchanges don't have these rules.

They have different rules for each country they operate in.

And they all have KYC.

"Most" crypto exchanges won't be around for long if they don't become pro regulation.

South Africa is simply following the standards already in place or proposed by most other countries.

42 Different Countries Discussed or Passed Crypto Regulations, Legislation in 2023: PwC

More than 40 countries have taken aim at advancing crypto-focused regulations and legislation this year, signaling wider cryptocurrency adoption globally may be underway. That’s according to a new report from professional services firm PriceWaterhouseCoopers.

www.coindesk.com

Still don't believe me? Have a look at this chart.

Cryptocurrency Regulation Tracker

New interactive database analyzes the state of cryptocurrency regulations in 25 of the world's largest economies

www.atlanticcouncil.org

AML/CFT is baked into the regulations for most countries and volunteered by good exchanges in the countries that don't force it.

Local exchanges have been doing this actively for many years already in wake of regulations being defined in SA and being ready beforehand.

There are entire business dedicated to the Travel Rule mentioned in the article servicing the crypto industry.

People love to think these exchanges operate all by themselves and just rake in the cash and love to moan about "high fees for doing nothing" but there's a massive industry at the back of them all making it all work.

 

[Swa]

They have different rules for each country they operate in.

And they all have KYC.

"Most" crypto exchanges won't be around for long if they don't become pro regulation.

South Africa is simply following the standards already in place or proposed by most other countries.

42 Different Countries Discussed or Passed Crypto Regulations, Legislation in 2023: PwC

More than 40 countries have taken aim at advancing crypto-focused regulations and legislation this year, signaling wider cryptocurrency adoption globally may be underway. That’s according to a new report from professional services firm PriceWaterhouseCoopers.

www.coindesk.com

Still don't believe me? Have a look at this chart.

Cryptocurrency Regulation Tracker

New interactive database analyzes the state of cryptocurrency regulations in 25 of the world's largest economies

www.atlanticcouncil.org

AML/CFT is baked into the regulations for most countries and volunteered by good exchanges in the countries that don't force it.

Local exchanges have been doing this actively for many years already in wake of regulations being defined in SA and being ready beforehand.

There are entire business dedicated to the Travel Rule mentioned in the article servicing the crypto industry.

People love to think these exchanges operate all by themselves and just rake in the cash and love to moan about "high fees for doing nothing" but there's a massive industry at the back of them all making it all work.

I am saying unless I misunderstand what is being proposed here nobody out there does it like this. Crypto doesn't even have the provision to do it like this. As for what is commonly called AML most of the time this is simply a tickbox "yes this is me" and you can transfer or cash out rather large amounts of crypto. On Binance for instance I wouldn't even reach the daily limit in a whole year.

Our local exchanges have gone above and beyond of what is required and not just because of impending regulations so to place such conditions on them is rather onerous when they have been behaving mostly as responsible actors.

 

[SauRoNZA]

I am saying unless I misunderstand what is being proposed here nobody out there does it like this. Crypto doesn't even have the provision to do it like this. As for what is commonly called AML most of the time this is simply a tickbox "yes this is me" and you can transfer or cash out rather large amounts of crypto. On Binance for instance I wouldn't even reach the daily limit in a whole year.

Our local exchanges have gone above and beyond of what is required and not just because of impending regulations so to place such conditions on them is rather onerous when they have been behaving mostly as responsible actors.

Crypto doesn’t need to make a provision for this, the exchange ties the wallets together and can actively not engage with a party that isn’t identified.

Do some Googling on companies like Sardine, Geocomply and Comply Advantage with your favourite exchanges and you’ll quickly see the good ones cater to this already.

The ones who are regarded as dodgy and bad exchanges are exactly the ones who don’t do this…the one you mentioned being one of them.

 

[Swa]

Crypto doesn’t need to make a provision for this, the exchange ties the wallets together and can actively not engage with a party that isn’t identified.

So some Googling on companies like Sardine, Geocomply and Comply Advantage with your favourite exchanges and you’ll quickly see the good ones cater to this already.

The ones who are regarded as dodgy and bad exchanges are exactly the ones who don’t do this…the one you mentioned being one of them.

That is not what is being proposed here. They have to send your whole pedigree with a chain transaction. Binance is also widely not regarded as a dodgy exchange and complying even with most international regulations where warranted.