Cryptocurrencies will soon be subject to SA’s exchange control measures

The SA Reserve Bank says foreign-exchange controls will soon apply to crypto currencies such as bitcoin, while all crypto asset service providers will need to apply for a special licence from the Financial Sector Conduct Authority (FSCA).

These pending new requirements form part of the second phase of the Bank’s blockchain case study for central banking, dubbed Project Khokha, which began after the establishment of the bank’s fintech unit in August 2017. The first phase of the project began in 2018 and included seven SA banks — Absa, Capitec, Discovery Bank, FirstRand, Investec, Nedbank and Standard Bank — which simulated a real-world trial of a blockchain-based wholesale payment system…