The Reserve Bank of South Africa’s Prudential Authority has recently sent out guidelines to all of its subsidiaries.
The guidelines have been sent out in an effort to encourage the reserve bank subsidiaries to adopt friendly behavior towards cryptocurrencies.
Guidelines for the Subsidiaries
The guidelines set by the Prudential Authority addressed the prevention of illicit activities as well as the adoption of positive and friendly behavior towards cryptocurrencies.
Since 2021, the South African regulatory authorities and the central entities have been cutting ties with the cryptocurrency industry.
In order for them to deal with illicit activities taking place in the world of cryptocurrencies, the regulators have decided to get rid of cryptocurrencies entirely.
Reserve Bank of South Africa’s Approach towards Cryptocurrencies
While the regulatory and financial entities are trying to fully eradicate cryptocurrencies from South Africa, the Reserve Bank wants to do things differently.
The Reserve Bank wants to deal with the situation very smartly and make cryptocurrencies part of its financial system.
The regulator seems to have recognized the importance of adopting cryptocurrencies and their role in the growth of their country.
Therefore, the Reserve Bank is determined to change the way the regulatory and financial entities are perceiving cryptocurrencies.
Reserve Bank’s Advice to Regulators/Financial Institutions
Instead, of putting an end to cryptocurrencies, the Reserve Bank wants the regulators and financial institutions to handle cryptocurrencies differently.
It wants to encourage these entities to identify the threats and things that may trigger anarchy within the cryptocurrency, spreading out to the country’s financial system.
The bank has warned that getting rid of cryptocurrencies can result in causing a huge collapse of their country’s financial system.
It would be a wise decision to grow a friendly attitude towards cryptocurrencies and let the cryptocurrencies thrive in the country. This way, people will not look for illegal or illicit mediums to interact with cryptocurrencies.
This may help the entire financial system remain intact and help it stay out of the crisis for a long time.
Fundi Tshazibana Supports Cryptocurrencies
It has been confirmed that the particular guideline/notice was signed and authorized by Fundi Tshazibana, the Prudential Authority CEO.
Until now, the financial institutions in South Africa have continued to cut their ties with any entities connected to or offering cryptocurrency exposure.
The guideline rolled out for the discontinuation of such services were mentioned in the Crypto Asset Service Providers (CASP) document.
It happened because South Africa did not have clear or well-measured cryptocurrency regulations to streamline them in the country.
With the latest guidelines sent out by the Reserve Bank of South Africa, things may start to get better for the cryptocurrency sector in South Africa.