Cryptocurrencies are getting popular in South Africa 

A new craze: Cryptocurrencies are getting popular in South Africa 

Buying, selling and trading cryptocurrency is gaining all the hype in South Africa. The crypto market is growing at a fast pace, which also follows the trend in the rest of Africa, where countries like Kenya and Nigeria are dealing with crypto transactions. However, the growth of crypto trading should also be followed with restrictions, which is becoming the next step for governments.

Why is cryptocurrency becoming popular? 

When looking at the world map of cryptocurrencies, Africa is one of the fastest-growing markets. In mid-2021, the amount of crypto transactions equaled 20 billion US dollars a month. Cryptocurrency has become more convenient since traders can buy and sell cryptocurrency just from their smartphones. And with a third of South Africa’s population owning a smartphone, according to ITWeb, it is not unlikely that you could find South Africans looking for the Ethereum Price or the price index for other cryptocurrencies. 

Cryptocurrency has gained popularity because buyers don’t need a credit card or bank account to access the currency. This makes it possible for South Africans to use cryptocurrency anywhere in the world without getting tracked since it is anonymous.  

The current crypto regulations 

Since the introduction of the cryptocurrency market in South Africa, cryptocurrency worth billions of rands has been traded in the country. Because of its status as an alternative to traditional currencies, there have been speculations about its legal status. In South Africa, trading cryptocurrency is permitted since the government has established regulatory rules to prevent fraud and protect investors. On a societal level, there is also acceptance of cryptocurrency since both individuals and businesses can use cryptocurrency. 

Mandated crypto exchange licenses

The Financial Sector Conduct Authority in South Africa has established crypto assets as a financial product. This was done in October 2022 to realize and underline the role of cryptocurrency in South Africa. Furthermore, businesses and individuals were advised to be cautious when dealing with cryptocurrency and always stay informed. 

In July of 2023, South Africa became the first country to require licenses from crypto exchanges within the country. Crypto exchanges couldn’t operate without a license after November 2023. Otherwise, they could be hit with a fine. This framework is an attempt to protect investors, among other things.

The future of cryptocurrency

As of now, cryptocurrency has gained a significant role in South Africa. People can trade at crypto exchanges and trading platforms, and since the government requires them to have licenses, this also cements cryptocurrency as a legitimate way of trading. In the future, there will likely be more exchange regulations that will attempt to inform and protect both individuals and investors engaging in crypto trading.