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Cathie Wood remains bullish and applies for approval for Bitcoin ETF

In South Africa there are plans to criminalize crypto transfers abroad.

Bitcoin transfers abroad could soon be jailed in South Africa. At least if the “Intergovernmental Fintech Working Group” (IFWG) has its way. The working group, which includes the South African central bank and the FSCA, is committed to developing “responsible innovation” in the financial market.

Like the South African tech news portal Mybroadband reported, also includes a ban on international transfers for cryptocurrencies purchased on South African Bitcoin exchanges.

Foreign Exchange Control Ordinance 10 (1) (c) prohibits transactions in which capital or the right to capital is exported directly or indirectly from South Africa without the approval of the National Treasury,

quotes Mybroadband from a June 11 Task Force position paper. Linked to this is the recommendation to classify cryptocurrencies as capital within the meaning of the Foreign Exchange Control Ordinance (see point 12).

Excerpt from the IFWG position paper. Green: Already in progress. Yellow: 12-24 months until implementation

The penalty for violating the Foreign Exchange Control Act is between a fine of 250,000 Rand (around 15,000 euros) and up to 5 years imprisonment.

Industry calls for Bitcoin regulation to be judicious

A manager from Luno urged Mybroadband to regulate it with a sense of proportion. Luno is a crypto exchange that claims to have over 2.1 million customers in South Africa.

A step-by-step approach to implementing regulation for the crypto industry in South Africa – starting with mandatory AML / KYC obligations – is a sensible approach that will help mitigate possible negative effects of regulation,

explains Marius Reitz, General Manager for Africa at Luno. Reitz warns against suffocating the still young crypto industry with excessively strict conditions or pushing it underground. Luno therefore works closely with global regulators. The aim is to determine “appropriate” measures for the regulation of Bitcoin and Co.

The Bitcoin exchange manager sees some catching up to do on the part of the authorities, especially when it comes to understanding blockchain technology.

You have to grapple with a new technology that very few understand yet,

so Reitz. The recommendations of the task force are binding. That means, Hodler: inside South Africa could be liable to prosecution in 12-24 months if they transfer Bitcoin to a foreign exchange (and get caught doing it). Provided that the IFWG does not improve.