The South African Reserve Bank (SARB) is aiming to introduce new ‘crypto rules’ to crack-down on cryptocurrency use-cases in evading currency controls. The rules will likely come forth in the first quarter of 2020.
The SARB deputy governor, Kuben Naidoo, told journalists about the forthcoming rules, but the report hasn’t been shared or verified by any official yet.
Local banks such as FNB have already pushed forward their efforts to shut down the banking accounts of companies that are involved in dealing with cryptocurrencies. As per FNB, it is a “prudent course of action,” which follows the potential risks associated with the cryptocurrency — since the cryptocurrency space still reportedly lacks the appropriate regulatory frameworks.
This being said, SARB intends to put restrictions on the limit of local currency being sent out of the country. In fact, it has already had the limitation of R1 Million for companies (as well as individuals) to send local money outside of the country.
However, per the reports, citizens can send up to R10 million by owning the special application to the SARB. As this limitation restricts citizens in South Africa to send money out of the country for foreign investment purposes, cryptocurrency is apparently being used widely. The SARB is set to enforce these rules by Q1 2020.