Luno, a South African-based bitcoin platform, is in favour of the country’s proposed regulations for crypto assets.
The new proposed rules, disclosed in a consultation paper by the South African Reserve Bank (SARB), are aimed at providing an overview of the perceived risks and benefits associated with crypto assets.
The paper titled Consultation Paper on Policy Proposals for Crypto Assets also aims to discuss the available regulatory approaches, and present policy proposals to industry participants and stakeholders.
South Africa does not currently intend to ban the buying, selling or holding of crypto assets, or to ban crypto assets for payments.
SARB proposed ‘limited regulation’ for crypto assets in the country.
The SA Reserve Bank yesterday published its views on regulating cryptocurrency and has asked industry for feedback until 15 February 2019.
Luno said on Wednesday it fully supports the risk-based and functional approach taken in the consultation paper.
It also supports the IFWG’s (Intergovernmental FinTech Working Group) decision to observe and adhere to international trends in terms of the regulation of crypto assets.
“We applaud the decision to implement the anti-money laundering / countering the financing of terrorism (AML/CFT) that form part of the recent amendments to the Financial Action Task Force (FATF) Recommendations and that all virtual asset providers register with the Financial Intelligence Centre (FIC),” Marius Reitz, Luno Country Manager, told TechFinancials on Wednesday.
“This will help keep out fraudsters and other operators with low concern (or capabilities) to keep customer information and money safe.”
Luno is one of the world’s most popular Bitcoin platforms, making it easy for people to buy, sell and learn about digital currencies.
The company has offices in London, Singapore and Cape Town and its services are now be available in 40 countries around the world.
Reitz added that regulation will provide consumers or potential consumers with the comfort that the service they are dealing with is held to defined regulatory standards.
“Imposing regulations will, in turn, enhance general trust in and stability of the market. It may also result in even more talent and investment capital flowing into the industry, unlocking more business models and bringing more advanced products to market,” he explained.
“We are very much in favour of regulation and we are actively working with a number of central banks and financial regulators, including the SARB, to drive regulation in the cryptocurrency field. Regulation will provide consumers or potential consumers with the comfort that the service they are dealing with is held to defined regulatory standards. Imposing regulations will, in turn, enhance general trust in and stability of the market.”
Reitz added that regulation ultimately brings clarity to businesses and consumers.
“It helps keep out fraudsters and other operators with low concern (or capabilities) to keep customer information and money safe,” he said.
“It may also result in even more talent and investment capital flowing into the industry, unlocking more business models and bringing more advanced products to market.”
Luno was founded in 2013 and named BitX, which was officially rebranded as Luno in January 2017.
The start-up is backed by Rand Merchant Investments, through its FinTech investment arm, AlphaCode, and existing investors Digital Currency Group, London-based Balderton Capital, one of Europe’s leading venture capital firms, and Africa’s biggest Internet firm Naspers.