Cryptocurrency Continues to Thrive in South Africa

Cryptocurrency Continues to Thrive in South Africa

The popularity of cryptocurrency is not just restricted to Europe, Asia, and North America. South Africa, the continent’s second-largest economy, continues to experience a cryptocurrency boom despite the price downturns experienced in the market so far in 2018.

Booming Cryptocurrency Exchange Market

The South African economy has struggled for the most of 2018. The rand (the country’s) fiat currency hit a six-month low in June, amid massive selloffs in the emerging markets. As a result, many South Africans have increased their focus on cryptocurrency with a particular interest in Bitcoin.

Recently, the country got its first multi-currency crypto ATM. Bitcoin remains a popular buzzword in the country. South Africa has consistently ranked as the country with the highest internet searches for Bitcoin.

Bitcoin exchange services in the country are experiencing record levels of patronage. Companies like Luno and Paxful enable locals to buy and sell Bitcoin. Luno, a cryptocurrency exchange platform, offers BTC/rand as well as ETH/rand trading pairs.

For South Africans who prefer to diversify their cryptocurrency trading portfolio, platforms like Coindirect enable them to buy and sell Litecoin, Bitcoin Cash, and Ripple. Coindirect also offers ERC-20 standard ICO tokens to local traders.

According to reports in the local media, asset management company Sygnia is set to launch a cryptocurrency trading platform in the country, later in the year. According to Magda Wierzycka, the CEO of the firm, the platform called SygniaCoin will offer trading services beyond the simple buying and selling of virtual assets. SygniaCoin’s plans are another upgrade to the cryptocurrency landscape in South Africa.

Cryptocurrency Regulations in South Africa

The nation’s apex banks said in May 2018 that the country’s laws prescribed that it was the only institution with the power to issue and manage currency in the country. As a result, the bank declared that Bitcoin and other cryptocurrencies were not recognized by law. The central bank is reportedly considering creating regulations for the cryptocurrency market.

The most significant law related to cryptocurrency in the country came in April when the South African Revenue Service announced a new framework for cryptocurrency taxes. Safe to say, that the environment in South Africa is far from restrictive and the market is booming as a result.

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Images courtesy of Google Trends, Shutterstock

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