Industry insiders have confirmed that the upcoming South African elections on May 29 will have no impact on the country’s cryptocurrency agenda.
Mpumelelo Ndamane, CEO of the South Africa-based crypto wallet provider Nuud Money, stated that the elections will steer clear of cryptocurrencies. He emphasized the stability of the South African Reserve Bank and FSCA over the past 30 years, ensuring independence from politics and asserting that it will not affect crypto policy.
Similarly, John McCarthy, general counsel for global regulatory affairs at Fireblocks, highlighted that most of the developments in the digital asset sector in South Africa are addressing apolitical issues. He echoed Ndamane’s sentiments, noting that the approach has been similar due to the nature of the problems being apolitical.
The Financial Sector Conduct Authority (FSCA) in South Africa is on track to issue licenses to 60 digital asset platforms, with a deadline of November 30 for exchanges to apply. This regulatory development marks a significant step, as regulators integrated cryptocurrencies into the nation’s Financial Advisory and Intermediary Services Act in 2022. Currently, three exchanges – VALR, Luno, and Zignaly – have already been licensed.
Maurice Crespi, a partner at the law firm Schindlers Attorneys in South Africa, commended this forward-thinking approach to regulate the digital asset space. He noted that it aligns with global trends and recognizes the increasing importance of blockchain technology in modern finance.
Additionally, the South African Nation’s Treasury is exploring the impact of stablecoin use and tokenization in domestic financial markets through its Intergovernmental Fintech Working Group. The group is expected to report their findings to the government by December 2024.