As crypto becomes more popular than ever, more and more financial institutions are warming up to it all over the world. The SA Reserve Bank from South Africa has announced that they are building a team and setting up a crypto branch in their organization.
But while announcing this Kuben Naidoo, made a mistake and said that his sources in the US have told him that 90% of crypto transactions are illegal. But this was far from the truth. As of now only 1.5% of the crypto transactions have been used for illicit purposes. This means that the Deputy Governor’s opinion was misinformed,
Illegal activities on the blockchain are very easy to spot and can be rectified easily. This is because the transactions on the blockchain are public and can be seen by the people. Also, major decisions are taken by referendum. This makes it a highly secure and transparent network.
But the Reserve Bank of South Africa will be regulating the cryptocurrency as a financial asset itself. It will be under the wing of FIC and new laws might be announced in the next 12-18 months.
This makes way for crypto to be an asset and many institutions are now taxing it. This also makes South Africa’s stand on crypto very clear, they are in favor of it. How it will be taxed in the future or how it will be classified will depend on the bank itself now.
As the world becomes more accepting of DeFi it will be interesting to see what people can do with it.