- Due to the levying of government regulations on local crypto of South Africa, the companies shifting their market to a different city
- The heads of the local crypto units in South Africa feel that the working of the government body is prolonged
- These unregulated prevalence is raising questions among the existing users
The lawmakers of the opaque regulations received warnings from South Africa crypto firms, stating that the firms shift all their operations abroad if proper guidelines for the regulations are not provided to them. These guidelines provide a clear picture of its digital assets in domestic industries. The CEO of Revix, a local platform for the investment of cryptocurrencies, mentioned in an interview that they are basically moving to a different city and are strictly planning a United Kingdom relocation for their headquarters. He also mentioned the guidelines’ provision was extremely slow from the end of the government. He also added that this slow rate of working leads to customers approaching the crypto with a lot of questions.
The problems faced by the South Africa crypto firms
Based on all other legitimate markets that are booming in their approaches towards cryptocurrency, South Africa seems to be taken steps backward, making it questionable for the local crypto marketers to function efficiently in the country. The government’s initiative to levy orthodox regulations on cryptocurrencies has proved to be highly tedious and slow. There is an initiative planned for a new office opening of Revix in Germany. The workers and managers of the crypto units working in SA are claiming that they are not receiving any cooperation from the end of the banking industries, which are not permitting them to use transaction services. This makes the purchasing of bitcoin via fiat currencies difficult for the customers, as Marius Reitz mentioned.
Need for regulating crypto transactions
However, another major fact that has been triggering the lesser use of crypto in South Africa and newer regulations being placed on them includes the intrusion of mal-users, who are basically scamming and leveraging the use of cryptocurrencies to the customers making it less safe. A huge number of crypto scamming data has been disclosed by the FSCA (Financial Sector Conduct Authority) of South Africa in the past month. Several firms were revealed for not maintaining a proper and legitimate database of their users, and investigations are still on by the FSCA.