Browsing by Author "Ismail, Zaakirah"

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    The regulation of digital currencies in South Africa: law, trade, aftermath
    (University of the Western Cape, 2024) Ismail, Zaakirah
    Over the years, cryptocurrencies such as Ethereum, Bitcoin, World Coins and others have experienced a significant growth, which has consequently attracted considerable attention from regulatory bodies and governments. This study investigates the regulatory landscape for cryptocurrencies in South Africa, utilizing a doctrinal research design to critically analyse existing literature and legal frameworks. This paper begins by delving deeper to the conceptual framework of the cryptocurrencies to unmask the technological underpinnings and their influence in the traditional financial systems. Some of the main issues that are addressed include country’s response to the emergence of digital assets and how these assets are treated under South African Financial laws. The paper will equally address cryptocurrencies regulations and their implication on tax, consumer protection and existing policies to curb related financial crimes. The paper begins by providing a comprehensive legal and conceptual framework for cryptocurrencies in South Africa, focusing on unmasking their technological and underpinnings and the impact on regulations. This analysis reveals that South Africa has adopted a conservative but a progressive approach to regulating cryptocurrencies. The South African Reserve Bank (SARB) and other regulatory bodies have published several guidelines and policy papers with the intention of striking a balance between innovation and the existing financial systems. However, there are indications that the cryptocurrencies’ regulatory structure in South Africa is not well defined and it equally leaves some serious legal implications on transactions, and other related cryptocurrencies operations. This doctrinal analysis questions the efficacy of present laws based on an extensive legal literature search of statutes, cases and commentaries. The research does state that South Africa has come a long way in the regulation of cryptocurrency, but there are regulatory implications that need progressive actions to monitor, and regulate transfers and its economic implications. This study adds to the literature on cryptocurrency regulation and has implications that extend beyond South Africa to other developing countries that are also grappling with the issues of digital finance.