Posted by SuperLevel at Aug. 19, 2022, 4:35 p.m.

South African Reserve Bank discourages the cutting of ties with crypto

Up until this point, some banks in South Africa sought to mitigate risks by terminating ties with crypto asset service providers (CASPs) owing to insufficient regulations. In fact, cryptocurrencies and virtual assets had previously been listed among the top 10 threats in a risk assessment report.

However, In the latest guidelines to its subsidiaries for the prevention of money laundering and other unlawful activities, the South African Reserve Bank pointed out that “Risk assessment does not necessarily imply that institutions should seek to avoid risk entirely, for example, through wholesale termination of client relationships which may include CASPs. [This] may pose a threat to financial integrity in general…”

The guidelines were received positively by the crypto community in South Africa and the move has been seen as a step toward adoption.

#crypto #africa #superlevel