Despite the uncertainty surrounding the digital assets market and after El Salvador decided to adopt Bitcoin as legal tender, it seems that many countries have decided to bet on the benefits offered by crypto assets and blockchain technology.
South Africa Takes a Step Forward in Crypto Adoption
Crypto adoption is expanding more and more and now seems to be the time to South Africa, which has recently published an act declaring cryptocurrencies as “financial products” capable of being traded, transferred and stored as a digital store of value. It is important to clarify that this does not mean that South Africa has established Bitcoin as legal tender, only has recognized the value of cryptocurrencies as financial assets.
What does this mean for South Africa?
These new statements are presented as a first step towards the creation of a regulatory framework to improve monitoring and create a transaction tracking system that can offer stability and security to the holders of crypto assets in the African country.
Now cryptocurrencies become financial investment instruments such as stocks or bonds, not as money or national currencies, a totally opposite position to that adopted by countries such as El Salvador or the Central African Republic. The minutes published by the African government also take into account companies and individuals seeking to provide advice or services based on digital assets within the countrywho must now be recognized as providers of financial services.
What impact can this have on the cryptocurrency market?
For months, the market has been suffering from various macroeconomic situations. In the current circumstances, South African government decision to regulate cryptocurrencies could improve market chances towards a much more positive change of direction in the coming days, though not by much.
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