ChainCatcher reports that, according to Bloomberg, the South African Reserve Bank (SRB) has warned that crypto assets and stablecoins, due to a lack of comprehensive regulation, have become a new risk threatening the country's financial industry.
In its semi-annual Financial Stability Assessment Report, the South African Reserve Bank (SRB) pointed out that the digital and cross-border nature of cryptocurrencies allows them to circumvent existing foreign exchange control laws, while digital assets are not yet subject to regulation. Herco Steyn, the SRB's chief macroprudential expert, stated that the risk stems from an "incomplete regulatory framework." He anticipates progress next year but warned that if progress stalls, "regulation will be inadequate." Currently, the SRB is working with the Treasury to develop new regulations to regulate cross-border crypto asset transactions and amend foreign exchange control laws to include digital assets. The SRB emphasized that as crypto asset adoption increases, the domestic regulatory framework needs to be continuously adjusted in line with market developments and risks. Data shows that the South African crypto industry is dominated by three major platforms: Luno, VALR, and Ovex. As of July, they had nearly 7.8 million registered users; and total assets reached 25.3 billion rand as of December 2024.
