The SA Reserve Bank will not interfere with future regulations regarding cryptocurrencies, because people are free to choose which assets they want to invest in. But people need to be warned that they may lose their money because investing in cryptocurrencies is not the same as making a bank deposit.
Kuben Naidoo, a deputy governor of the Reserve Bank, this week said that new regulations on cryptocurrencies could be implemented in South Africa within the next 12 to 18 months to ensure the security of cryptocurrency platforms, to identify criminal activity such as money laundering and to help to protect investors.
Thomas Lobban, an expert in crypto taxation at Tax Consulting SA, says South Africans should be relieved that the central bank is not prohibiting cross-border crypto trading and investment.
But crypto investors must remember that they still have to report such transactions and must make sure they comply with all the tax requirements, he said.
As part of PSG’s Think Big talk series, Naidoo emphasised that the Reserve Bank did not want to interfere with investors’ crypto decisions.
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