certify
Home arrow Article arrow Article Detail

South African new legislation ban pension funds from investing in cryptocurrencies

Profile Image

Pavan A Follow

INDIA

Nov, 04 2021

Nov, 04 2021

likes 0 | comments 0

Article Image

A proposal from South African finance minister Enoch Godongwana bars pension funds from investing in digital assets and a deadline is November 12 for the same.

As per the Business Insider SA, Godongwana's deadline for public comment on the draught proposals indicates that he wants changes in place by the end of the year. prior to Godongwana's suggestions, South African pension funds saw cryptocurrencies as a grey area field in which they might invest up to 2.5% of their assets.

The new guidelines exclude cryptocurrency. Due to a lack of investor protection, South African officials have expressed persistent concerns about the risky nature of digital currencies, while also exploring the potential applications of distributed ledger technology. Regulation 28 uses the Pension Funds Act to regulate how funds can be invested and are intended to safeguard investors from over-investing in a single asset type.

Crypto assets are defined by the government of South Africa as any digital representation of value, “not issued by a central bank, but is capable of being traded, transferred or stored electronically by natural and legal persons for the purpose of payment, investment, and other forms of utility; applies cryptographic techniques and uses distributed ledger technology.”

Recent reports have indicated the South African financial regulators are preparing to speed up crypto regulation in response to retail investors being scammed by shady investment firms. 

The South African Revenue Services changed its online tax filing system in a move targeting cryptocurrency arbitrage traders, as per Bitcoin.com news reported in July.

Similarly, in July, news reports claimed that the South African Revenue Services had changed its online tax filing system to target cryptocurrency arbitrage traders.

Finance Minister Godongwana's ministry utilizes similar justifications to back the draught plans, just like other South African regulators who have exploited consumer protection concerns to justify its actions against cryptocurrency. It claims that the proposed reforms will protect investors by restricting the amount of money that retirement plans can invest in specific assets or asset types.


likes 0 Likes | comments 0 Comments

Profile Image

Pavan A

CBW - External Analyst

INDIA

Comments
WHAT IS AN EXTERNAL ANALYST
banner
Article
Binance's Dogecoin problem is 'shady' says Elon Musk

A self-proclaimed "Dogefather," Tesla CEO Elon Musk defended Dogecoin investors yet again on Twitter. He and Binance CEO Changpeng Zhao got into a Twitter spat over dogecoin withdrawal issues...;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.