South African crypto platforms will be required to identify parties to a cryptocurrency transaction

Daniel Puchert

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Major change for people who buy and sell crypto in South Africa

The Financial Intelligence Centre (FIC) has issued Directive 9, which will require crypto platforms in South Africa to identify the parties to a cryptocurrency transaction.

This is part of an effort to get off the Financial Action Task Force (FATF) greylist by complying with its "travel rule" for virtual assets.
 
Both sending and receiving CASPs must verify the provided information if the transaction value exceeds R5,000 or if there is suspicion of money laundering, terrorist financing, or the illegal funding of weapons of mass destruction.
Well that escalated quickly.

Common guys... what are you doing with your crypto that this is an issue.
 
Thats going to be quite difficult. They can identify their wallets but not others.
 
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you required to KYC here already...how do you determine this other info then? sometimes when you read the rules you wonder if they know just wtf they referring to...

you can be sure people that are buying WMD is not doing normal transactions...the only people as usual that are impacted are just normal people...
 
I'm sure crypto currency is funding all kinds of nasty things from war to human trafficking, and drugs & child prostitution.

Won't be surprised if ANC cadre's is using it to hide all their money they stole due to corruption and what not.
 
The crooks will just use stolen ID's they got from their buddies at HA. This has more to do with SARS wanting their piece of flesh.
 
Pretty sure the dollar is easier traceable then crypto currency.

Well all the crypto transactions are openly recorded on the public ledger for anyone to view so on a technical level crypto is more easily traceable. It's just not easily identifiable for kyc as all the transactions are anonymous, and there is no institution or individual you can try to threaten or coerce to disclose or do anything.
 
Click bait headline. There is no change for users and only for crypto platforms. There is nothing to read here.
 
you required to KYC here already...how do you determine this other info then? sometimes when you read the rules you wonder if they know just wtf they referring to...

you can be sure people that are buying WMD is not doing normal transactions...the only people as usual that are impacted are just normal people...
They won't work this way in practice. The information will be there but it will be in bits and pieces and not held by a single party. If you do a transaction to a CASP they can't exactly block it. And the countries that implemented the travel rule did so mostly as lip service with even more loopholes than Rica precisely because doing it this way will make transacting impossible.
 
Nothing like buying a Nuke R4,999 at a time.

Jissest that limit is f***ing retarded. Having had to build a reporting process for CRS and FATCA for a bank in the past I feel bad for the techie having to implement this pain in the arse.
These apes never disappoint when it comes to retarded ideas.

"Travel rule" nogal, that doesn't sound much 4th 5th 6th industrial revolution to me, nê president p**s?
I demand we implement a blockchain dompas too.


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Pretty sure the dollar is easier traceable then crypto currency.
Every transaction is available on the blockchain for people to view. Your cash transactions dont get as much transparency. No one can go look up your previous cash transactions.
 
Nothing like buying a Nuke R4,999 at a time.

Jissest that limit is f***ing retarded. Having had to build a reporting process for CRS and FATCA for a bank in the past I feel bad for the techie having to implement this pain in the arse.
These apes never disappoint when it comes to retarded ideas.

"Travel rule" nogal, that doesn't sound much 4th 5th 6th industrial revolution to me, nê president p**s?
I demand we implement a blockchain dompas too.


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All our limits are retarded, like the R500 gift threshold for imports when almost every country have set ecommerce threshold that are far higher. It's like they've set it up for Mickey Mouse.
 
All our limits are retarded, like the R500 gift threshold for imports when almost every country have set ecommerce threshold that are far higher. It's like they've set it up for Mickey Mouse.

There's no meal too small for our local piggies.
They remind me of the degree to which my sister could strip a KFC bone when we were kids.
If the cartilage was stubborn she would take the whole tip off.

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There's no meal too small for our local piggies.
They remind me of the degree to which my sister could strip a KFC bone when we were kids.
If the cartilage was stubborn she would take the whole tip off.

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I also suspect our local profiteers will have a fit when you can import a R5000 monitor from Amazon without paying tax for less than what they sell it.
 
I also suspect our local profiteers will have a fit when you can import a R5000 monitor from Amazon without paying tax for less than what they sell it.

Oh of course!
They'd be all over the next ANC conference or dropping sponsored MyBB Ads about how "hurtful" international e-commerce is to the local "industry" and how me must protekt our pipple.
 
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Thats going to be quite difficult. They can identify their wallets but not others.
Yes, what happens when someone transfers to an "unhosted wallet"? How is the identity of the receiving party going to be reported?

And transactions between "unhosted wallets"?

If someone transfers R10000 in ETH from private wallet to private wallet how is that going to be reported?
 
The Irony?

Crypto is probably supplying half the criminal underworlds transactions and 99% of it is probably laundering and moving cash around without paying fees.

But you have NGOs and "charities" setup in South Africa who are probably sending millions off to support terrorist camps, groups and weapons manufacturers and they're untouched.
 
Yes, what happens when someone transfers to an "unhosted wallet"? How is the identity of the receiving party going to be reported?

And transactions between "unhosted wallets"?

If someone transfers R10000 in ETH from private wallet to private wallet how is that going to be reported?
i believe the term is "snitch" lol or just any form of ID.

So they'll expect you to either know the ETH wallet holders name and give it to them (completely and utterly defeating the purpose cryptocurrencies) or they will want you to put some kind of name in, or identifier, or association etc. they'll slowly be sitting with a nice collection of wallets->names or perceived names at least anyway.
 
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