South African authorities plan to launch a cryptocurrencies transaction control system

The Reserve Bank of South Africa is considering options for creating a regulatory framework to control the movement of cryptocurrencies.

As BusinessReport clarifies, that by the end of the first quarter of 2020, the South African Central Bank will begin to apply new rules for regulating token transactions.

Media reports about the intention to tighten control over transactions appeared a few days after the announcement of Twitter founder Jack Dorsey that Africa will become an important part of the Bitcoin ecosystem. He wrote about this on his social network page, visiting several African countries and making sure that the local population is actively switching to digital currencies.

A statement by the Reserve Bank of South Africa notes that regulation of the blockchain industry is necessary, as the volume of tokens usage by criminals has recently increased.

Now for the South African BTC holders in the country, there are limits on the transfer when sending funds abroad. It is expected that the new legislation will not only strengthen restrictions, but even prohibit the sending funds in cryptocurrency to other jurisdictions.

cryptocurrencies

At the moment it is unknow in which way the regulator will monitor the movement of funds and suppress transfers above the designated limit.

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