Travel Rule potentially has significant implications for self-hosted wallets in South Africa

Jan

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Warning to people who use their own crypto wallets in South Africa

People who use non-custodial crypto wallets may soon find it more difficult to transfer their tokens to local exchanges to sell back to fiat currency or trade for other cryptocurrencies.

The Financial Intelligence Centre (FIC) recently issued Directive 9, which implements a version of the Financial Action Task Force (FATF) "travel rule" in South Africa.
 
Jan said:
Warning to people who use their own crypto wallets in South Africa

People who use non-custodial crypto wallets may soon find it more difficult to transfer their tokens to local exchanges to sell back to fiat currency or trade for other cryptocurrencies.

The Financial Intelligence Centre (FIC) recently issued Directive 9, which implements a version of the Financial Action Task Force (FATF) "travel rule" in South Africa.
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The link on the news page doesn’t come here, it’s self referencing.
 
So what happens if you do the usual thing of having crypto on your own wallet, you send that to Binance to sell for BTC or Tether etc. then send that to a local exchange to cash out to fiat?
 
I'm in no sense clued up or have much of an idea of what's going on but I get the impression government is trying to control something that potentially can't be controlled.
 
been implemented in other countries for years already, travel rule is in full effect in Malaysia for example where Luno is licensed

when it comes to self custody wallets (note that is the term, the blockchain "hosts" the stuff, the individual custodies it only, not hosts), they have always done monitoring of known dodgy addresses with providers like Chainalysis, effectively the only thing different is a step somewhere along the line for a customer to attest to being the owner of a self custody wallet and provide some info before being allowed to transfer between it and the exchange for the first time

there's travel rule focused providers for exactly this purpose: compliance without messing around customers too much e.g. Sumsub and Notebene
 
Curt889 said:
I'm in no sense clued up or have much of an idea of what's going on but I get the impression government is trying to control something that potentially can't be controlled.
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in this case they're apparently just trying to force compliance with USA's demands like this in order to get off the FATF grey-list

the more stupid one is where the article hints at exchange control desires, these idiots simply cannot comprehend that a blockchain lives everywhere in the world and nowhere at the same time, that there is no such thing as a "local" wallet vs an "overseas" wallet
 
NarrowBandFtw said:
in this case they're apparently just trying to force compliance with USA's demands like this in order to get off the FATF grey-list

the more stupid one is where the article hints at exchange control desires, these idiots simply cannot comprehend that a blockchain lives everywhere in the world and nowhere at the same time, that there is no such thing as a "local" wallet vs an "overseas" wallet
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That's what I thought.
 
saor said:
So what happens if you do the usual thing of having crypto on your own wallet, you send that to Binance to sell for BTC or Tether etc. then send that to a local exchange to cash out to fiat?
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My understanding (without reading the article fully) is that they're pointing out that hardware wallets are not a magic bullet to being free of the government since you need to cash out at some point. Dunno really.
 
So what do they want me to do? Send then copies of my paper wallets, only to find all the coins dissapear?
 
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