Major crypto platform operators in South Africa respond to the Financial Intelligence Centre’s proposed regulations for cryptocurrency transfers in South Africa.
Several crypto industry insiders have told MyBroadband that they are concerned about regulations the Financial Intelligence Centre has proposed regarding cryptocurrency transactions in South Africa.
, South African crypto asset service providers must transmit a sender’s full name, ID or passport number, residential address, date and place of birth, and wallet address. Additionally, the draft directive places the risk of accepting transfers from “unhosted wallets” onto CASPs. “Implementing the Travel Rule also brings data privacy risks as user data needs to be shared with external crypto exchanges which may not have strict data privacy measures in place.”
Ehsani said the FIC should provide a substantial grandfathering period to allow CASPs to put sufficient measures in place to comply with the guidelines.Regarding what the directive gets right, Altify, Luno, and VALR all agreed that it aligned South Africa well with the FATF’s requirements. “ is an issue which the banking industry is still actively trying to address for domestic transactions,” Hetzel said.
For example, a service called Notabene describes itself as the only pre-transaction crypto compliance platform. Sanders said jurisdictions like South Korea and Japan require users to sign waivers for such transfers, putting the risk and regulatory reporting requirements on them.“I believe South Africa might adopt a similar approach after the FIC gathers feedback from industry stakeholders,” Sanders said.“Theoretically, it would allow a CASP to disallow transactions to or from unhosted wallets, based on each CASP’s risk appetite,” he said.
DeFi luminary Andre Cronje, credited with helping to grow the field into a multi-billion dollar industry, told MyBroadband that the Travel Rule’s impact would likely be limited.
Elliptic Financial Action Task Force (FATF) Financial Intelligence Centre (FIC) Financial Intelligence Centre Act (FICA) Greylisting Headline Notabene Sumsub Travel Rule Cryptocurrency
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