SA’s crypto players have welcomed the SARB’ guidance notice to the big banks to start working with crypto players.
South African-based crypto-currency exchanges have welcomed the South African Reserve Bank’s Prudential Authority’s The guidance notice follows some local big banks shutting down the accounts of crypto-currency exchanges, largely fearful of the potential risks they present.it was closing down crypto-related bank accounts, much to the anger of local digital currency players.
It says this approach of banks to CASPs may be premised on various reasons, including the uncertainty in relation to the money-laundering, terrorist financing and proliferation financing risk that CASPs present, or the lack of formal regulatory requirements applicable to CASPs. “De-risking may pose a threat to financial integrity in general and to the application of a risk-based approach, specifically, as it could potentially create opacity in the affected persons’ or entities’ financial conduct, and it eliminates the possibility to treat ML/TF/PF risks.”
“In March of this year, CAASA sent a letter to the reserve bank requesting that this issue be addressed and to provide guidance to the banking sector. We are pleased and genuinely appreciative that the SARB has heard our industry's concerns and responded appropriately.” According to Reitz, FNB unbanked Luno along with other crypto-currency platforms in March 2020 before the other banks followed.
He notes the crypto-currency industry has driven economic growth and financial inclusion in South Africa.
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