ADVERTISEMENT

Cryptocurrency industry needs to play by the rules – even if there aren’t any

By Centbee 10 December 2019

Despite crypto being unregulated in South Africa, the current regulatory stance is that South Africans may buy any cryptocurrency assets, store them and pay for goods and services. Like art and jewellery, even though cryptocurrencies are not registered as a financial security, it is still legal to own and use them.

At Centbee, we’ve provided detailed commentary and recommendations to the Intergovernmental FinTech Working Group (IFWG), which has been well-received by the regulators. We strongly believe that regulation supporting cryptocurrencies is necessary to protect customers. We have been a prominent voice in the South African and global media over the past few years encouraging regulators to develop considered regulation and provide guidelines.

Corruption and money-laundering have been discussed a lot this year in South Africa, and exposés into illegal activity have led to the fall of presidents and governments globally. Nobody wants to see criminals get away with their ill-gotten gains and the public supports efforts to detect and prosecute them.

As individuals, we begrudgingly put up with know your customer (KYC) procedures at banks and other financial institutions. Fintech firms like InterGreatMe and Tulioo are making these procedures far simpler and convenient allowing customers to complete the FICA or RICA process from home within minutes.

There are global guidelines as to how anti-money laundering (AML) procedures should be designed, and these will very soon apply to the cryptocurrency industry.  Reputable and forward-thinking cryptocurrency exchanges and wallets already implement their own procedures based on these principles.

The IFWG which is made up of members of the South African Reserve Bank, SARS, the Financial Intelligence Centre, National Treasury, National Credit Regulator and the Financial Sector Conduct Authority has indicated that they intend to provide an improved regulatory framework for cryptocurrency assets.

BitcoinSV committed to regulation compliance

Centbee’s core business is to build a payments ecosystem on top of the BitcoinSV blockchain. The BitcoinSV community and developer ecosystem is committed to compliance with laws and regulations. This BSV community and Centbee are very focused on creating a legally sustainable system to the satisfaction of global regulators. We believe that pure anonymity in financial transactions will only serve criminals, and we agree with Satoshi’s vision of a crypto asset that is ‘pseudonymous’. This means that your transactions are private, but not anonymous. A properly authorised investigating party, such as a forensic team, can trace funds.

Contrary to the anarchist belief that pseudonymity is an infringement on your rights to privacy, Centbee believes that a pseudonymous system, such as BitcoinSV, will increase freedom in the world by enabling citizens to hold institutions such as government and state-owned entities accountable by increasing transparency in all transactions thereby reducing crime and corruption.

Centbee will only ever support a cryptocurrency that is regulation-friendly, and will actively support regulators in creating policy and rules that make cryptocurrency safe for customers to use every day. DM

 

By Angus Brown, CEO, Centbee

Angus Brown is the co-founder and CEO of Centbee, a FinTech firm based in South Africa that builds products and services that make it easy to send, store and spend Bitcoin SV. Their vision is to help people pay for real-world goods and services using Bitcoinsv payment processes. The Centbee wallet, available in the App Store and Google Play store, enables customers to top-up Bitcoin S V from  till-points in over 50,000 retailers across South Africa.

Brown started his career in physics, and has spent over 20 years in banking. During his time at First Rand Limited, he co-founded eBucks.com, the world’s first bank-backed digital currency. He also held executive positions at FNB, Mercantile Bank, Blue Label Telecoms and MMI Holdings before starting Centbee in 2016 with his co-founder, blockchain and bitcoin expert, Lorien Gamaroff.

www.centbee.com

Gallery

Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or if you are already an Insider.

#BUDGET2020 ANALYSIS

Tito Mboweni’s Budget reveals a weakened National Treasury 

By Ferial Haffajee