Insiders affirm that South African elections will have no impact on the market.
Industry insiders predict that the upcoming South African elections on May 29 will have no impact on the nation’s cryptocurrency agenda. According to Mpumelelo Ndamane, CEO of South African crypto wallet provider Nuud Money, the elections will not interfere with cryptocurrencies. Ndamane emphasized the stability of the South African Reserve Bank and Financial Sector Conduct Authority, which have remained independent of politics for the past 30 years. He stated, “It won’t affect the crypto policy.”
Similarly, John McCarthy, general counsel for global regulatory affairs at Fireblocks, supported this viewpoint, stating that most of the developments in the digital asset sector in South Africa are focused on addressing apolitical issues. McCarthy highlighted the involvement of an intergovernmental working body, which inherently avoids political influences.
As previously reported, the Financial Sector Conduct Authority plans to issue licenses to 60 digital asset platforms, with a deadline of November 30 for exchanges to apply. This licensing framework is a significant step in regulatory developments and was implemented by including cryptocurrencies in the nation’s Financial Advisory and Intermediary Services Act in 2022. Currently, three exchanges, VALR, Luno, and Zignaly, have already received licenses.
Maurice Crespi, a partner at South African law firm Schindlers Attorneys, praised this approach as forward-thinking and aimed at regulating the digital asset space. Crespi emphasized that it aligns with global trends and recognizes the growing importance of blockchain technology in the finance industry.
Furthermore, the South African Treasury’s Intergovernmental Fintech Working Group is examining the impact of stablecoin use and tokenization in domestic financial markets. The group is expected to present its findings to the government by December 2024. South Africa’s commitment to licensing crypto exchanges and exploring the potential of blockchain technology demonstrates its dedication to embracing the future of finance.
