Cyril Ramaphosa, the President of South Africa from the African National Congress (ANC) party, has been re-elected for a second term. This marks the first time the country will have a multi-party coalition government, as the ANC fell short of the 200 seats needed for a majority, securing only 159 seats. After negotiations, a fragile coalition government, known as the government of national unity, was formed with the Democratic Alliance, the Inkatha Freedom Party, and the Patriotic Alliance.
The ANC has been in power for 30 years since the end of apartheid in 1994. This election gives them another five years in office, but with a weaker majority compared to the previous parliament where they had 230 seats. Despite the change in leadership, the election results are not expected to have a significant impact on South Africa’s growing crypto industry.
The Financial Sector Conduct Authority has recently established a licensing regime for crypto, making South Africa one of the first African nations to do so. Digital asset firms such as Luno, Zignaly, and VALR have already received licenses. The country included crypto providers in its Financial Advisory and Intermediary Services Act in 2022 to regulate digital assets as financial products.
The Intergovernmental Fintech Working Group is set to explore stablecoins and develop a policy and regulatory response this year. Additionally, they will examine the implications of tokenization. South Africa has also started consulting on a directive that would include crypto in the country’s Travel Rules, requiring virtual asset service providers to transmit information on wallets and passports during transfers.
Many countries worldwide are implementing the Financial Action Task Force’s travel rule to share information on crypto transactions and combat money laundering. CoinDesk, an award-winning media outlet covering the cryptocurrency industry, has recently been acquired by the Bullish group, which owns a regulated digital assets exchange. CoinDesk operates independently with an editorial committee to ensure journalistic integrity.
Camomile Shumba and Cheyenne Ligon, CoinDesk reporters, cover regulatory and policy developments in the crypto space. They provide valuable insights and analysis on the evolving landscape of digital assets. As South Africa navigates the complexities of regulating crypto, it remains at the forefront of innovation in the region. The country’s proactive approach to licensing and oversight demonstrates its commitment to fostering a thriving digital economy while ensuring consumer protection and regulatory compliance.
