Luno holds on to South Africa’s Draft Crypto Regulations

One of the South African-headquartered cryptocurrency platform Luno has replied positively to a new discussion paper called as Consultation Paper on Policy Proposals for Crypto Assets, from the South African Reserve Bank (SARB).

This new paper purposes to show the advantages and dangers of the industry reviews methods by other industries and presents commendations for commerce with cryptocurrency assets from a South African viewpoint.

Marius Reitz Johannesburg, Luno South Africa country manager stated that he does not see the organization to oblige the step of innovation with its guideline. He said this in an interview at a media event in Sandton to MyBroadband.

The new drafts have stated that virtual currencies such as bitcoin will now be classed as intangible assets and are now subject to taxation. If SARS manage to get the draft through, these South African crypto regulations on tax will force local crypto users to declare how much income they are making via crypto.

The new draft defines the crypto tax framework that some will believe goes against the entire ethos of crypto being anonymous in the first place and will be met with a hardline stance in some quarters of the industry.

While South African authorities at present have no meaning of any prohibition on the sale, holding or making payments with crypto assets, they do suggest limited guideline going forward.
Answering to the new discussion, which is open to feedback until February 19th, Luno hailed the paper, with Marius Reitz, Luno Country Manager, stating TechFinancials:

“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),” he further added that “This will help keep out fraudsters and other operators with low concern (or capabilities) to keep customer information and money safe.”Crypto users in South Africa can rest assured that if the bill is passed, digital tokens will not incur VAT.

“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…It helps keep out fraudsters and other operators with low concern (or capabilities) to keep customer information and money safe.”

A study commissioned by Luno which examined South African sentiment towards cryptocurrencies found that guidelines played an important part in adoption. Luno notes that while cryptocurrency is not presently controlled in South Africa, this does not make it unlawful.

As a self-regulating object, Luno fulfills with AML as well as KYC procedures in spite of not being indebted to do so. Luno has made this choice for both convenience and safety reasons. It is also making on making its app, platform, and cryptocurrency wallet as easy-to-use and safe as possible.