Cryptocompanies in South Africa threaten to relocate if local lawmakers fail to clarify the regulation of the domestic digital asset industry.

In an interview with Bloomberg, Sean Sanders, CEO of the local crypto investment platform Revix, which plans to move its headquarters to the UK, described the South African government as “incredibly slow” to clarify the regulatory requirements of the encryption industry.

“This leads to companies applying internationally. In an unregulated environment, the client comes to our platform with skepticism, and rightly so, ”adds:

South Africa seems to be moving in the opposite direction of some of the more advanced market leaders and innovators in the field. Regulators find it lazy to apply 100-year-old securities rules to a new class of cryptocurrency assets. ”
Revix also plans to open an additional office in Germany.

Cryptocompanies in South Africa have claimed that the country’s financial institutions are reluctant to offer banking services to them, and Marius Ritz, African general manager of the Global Cryptocurrency Exchange, warned Luno that an apparent ban on the bank is stifling domestic adoption:

“This makes it very difficult for customers to buy bitcoin in local fiat currency,” he said.
South Africa’s adoption is also hampered by the recent spread of fraudsters using cryptocurrencies to lure victims. Last month, the Financial Sector Supervisory Authority of South Africa (FSCA) reported that cryptocurrency fraud is on the rise among today’s bull market. In a statement issued on February 4, the FSCA warned investors:

“Take your time to go with the flow and do not be afraid to stay away from the next big event.”
In December 2020, the Cointelegraph reported that the alleged South African Ponzi scheme, Mirror Trading International, had been temporarily discontinued by regulators after receiving over 23,000 bitcoins from investors.

The FSCA survey revealed that the company did not keep accounting records and user databases. Investors were unable to withdraw the money when the FSCA suggested that Mirror boss Johan Steinberg may have fled to Brazil.

Source: CoinTelegraph