A branch of Yellow Card Financial can now be found in Senegal! The pan-African cryptocurrency firm now has a total of 16 African nations where it operates.
Senegal is attracting an increasing number of cryptocurrency-related businesses. Yellow Card Financial is the next company to make a name for itself in the world of teranga, following in the footsteps of Binance Africa.
Chris Maurice, co-founder and chief executive officer (CEO) of Yellow Card
The team, located in the United States and Africa, has been operating in Nigeria since 2018 and allows the purchase of cryptocurrency for all Africans. XOF Cfa, the native currency of Senegal, has been added to the company’s list of currencies that may be purchased with local currency, mobile money, bank card, and bank transfer.
Though it is a new market for cryptocurrency, Senegal’s COO, Ines Lowe SALL, believes that the country is able to meet the challenges of this industry and prosper.
“There is a strong network of local traders and cryptocurrency aficionados who are eager to learn more about this new technology. Because of this, the Senegalese cryptocurrency market is still a very accessible one to enter. For us, it’s all about making financial inclusion a reality for everyone by providing the greatest cryptocurrency trading platform,” she stated in a statement obtained by Afrikanheroes.
“Senegal has a population of 17.42 million, of which 8.01 million are internet users, with an internet penetration rate of 46 percent. They may be poor but they’re open-minded and eager to try new things, and they’re the majority of the population. Education and lack of cryptocurrency regulation are two of the biggest roadblocks to the market’s positive growth. For the Senegalese market, Yellow Card is ready to collaborate with regulators and other ecosystem players in the decision-making processes to develop guidelines to help regulate cryptocurrency activities. These regulators intend to dramatically improve the measures they have in place to license bitcoin and blockchain businesses. Users of the Yellow Card app will be able to pay for goods and services using a Mobile Money API that can be integrated into the Yellow Card app,” added Yello Card Financial Senegal’s CEO.
“Keeping our clients and partners safe is a priority for Yellow Card, which is why we demand our partners and consumers to undergo KYC and AML checks,” the CEO said.
eCFA, the national digital currency of Senegal, could pose a challenge to cryptocurrency businesses in the future, based on the blockchain technology that underpins Bitcoin.
Because the eCFA is legal cash issued by the central bank, it will be supported by the government. Regulators are poised to issue a license that will allow regulated transactions of cryptocurrency for the time being.
In Senegal, Yellow Card is focusing its efforts on educating the population about cryptocurrency and the blockchain in an effort to offer financial independence to everyone. This will be accomplished via webinars, workshops, conferences, and the Yellow Card Academy, a free instructional portal.
Across Africa, there are endless possibilities for the use of cryptocurrencies, both in established markets and new ones. The adoption of cryptocurrencies appears to be the best solution to this problem as more and more countries are looking for more convenient and secure ways to conduct transactions. When it comes to exploring cryptocurrencies, there is no better moment.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
There are indications that South African authorities are looking into the possibility of getting the country’s tax agency to target cryptocurrency investors as it attempts to increase the total value of revenues collected. Alongside high net worth individuals and offshore investors, digital currency holders now constitute an area that is “likely to yield much of the extra tax” for the revenue collector.
Cryptos
However, according to a report, many South African cryptocurrency holders are “oblivious of the fact that trading in cryptocurrency renders them liable for tax.” The report, which relies on the expert opinion of Thomas Lobban, says the “South African Revenue Service (SARS) (currently) has cryptocurrency trading very much in its sights.”
Further, Lobban who is the legal manager at Tax Consulting South Africa said:
As with any other asset class, investors must understand their tax obligations in relation to their crypto investments, and plan accordingly. If they do not, then chances are they could find themselves facing an unwelcome tax bill down the line.
Meanwhile, the report also quotes Lobban explaining how the different types of crypto trades can have a bearing on the kind of tax that will be paid. For instance, Lobban asserts that “crypto transactions could be deemed to be capital in nature and thus liable only for capital gains tax.”
On the other hand, some transactions “could be deemed to be revenue-earning in nature, and would thus be taxed according to the taxpayer’s normal tax rate as per the tax tables.” The tax consultant also points out that when “a trade is made between, say, bitcoin and ethereum, the notional profits of that transaction would also be taxable.” This position is in contrast to the prevailing belief that a “tax event” only occurs when the cryptocurrency is withdrawn and converted into legal tender.
In the meantime, Lobban reveals that SARS is already requesting information on crypto transactions on audit letters issued to taxpayers. In addition, the revenue collector is reportedly “investing heavily in its IT capabilities.” The report adds that such capabilities will enable SARS “to analyse financial and transaction data more effectively, and identify transactions in and out of crypto platforms.”
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
In early April 2021, the Central Bank of Nigeria (CBN) issued a circular warning Nigerian institutions to stop the practice of rejecting old or lower denomination USD notes. The CBN issued the warning after it became “inundated with complaints from members of the public on the rejection of such notes by banks and other authorized forex dealers.”
In the circular issued by Ahmed Umar, a director in the CBN’s Currency Operations Department, the central bank says it will sanction institutions that “refuse to accept old series/lower denominations U.S. dollar bills from their customers.”
Furthermore, the CBN warned against the same institutions to cease the practice of defacing/stamping USD notes as these “always fail authentication tests during processing or sorting.”
In the meantime, Nigeria is not the only inflation hit African country to face this predicament. In Zimbabwe, which has similarly seen the value of its currency plunge in the past few years, rejection of old or torn U.S. dollars continues to be a problem. At one point, the U.S. Embassy in Harare was forced to issue a statement reassuring Zimbabweans that all U.S. notes remain legal tender regardless of when they were issued.
In its September 2020 statement, the U.S. Embassy said:
Any badly soiled, dirty, defaced, disintegrated, limp, torn, or worn-out currency note that is clearly more than one-half of the original note, and does not require special examination to determine its value, is not considered mutilated.
This message was later reaffirmed by the Reserve of Bank of Zimbabwe (RBZ) in December 2020 as it attempted to end the practice.
Yet despite these assurances, torn or worn out USD notes continue to be rejected by businesses and the general public. In addition, this continuing rejection of old or worn-out USD banknotes has created a new black market for such currencies. As noted by one report, some Zimbabwean currency dealers are demanding a premium of up to 50% on some torn or old USD banknote.
While the U.S. dollar is a widely accepted alternative to the local fiat currencies, it is such shortcomings that make cryptocurrencies an even better option. For instance, in addition to being immune to local inflation and depreciation, crypto assets like bitcoin (BTC) or bitcoin cash (BCH) enable users to pay for any amount without worrying about the lower denomination dollars or torn notes they might get as change.
In instances where one needs to make payments across borders, cryptocurrencies again prove to be a better option because the recipient will get paid the exact amount that is due to them. As central banks in Nigeria and Zimbabwe have learned, coercion will not force people to accept any currency, including the U.S. dollar.
Instead, it is innovative and secure money that has a better chance of overcoming this challenge.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
The global cryptocurrency market has grown exponentially in 2021 and is now worth a staggering $2.0 trillion as it increasingly attracts interest from big names on Wall Street. As digital currency exchange Coinbase prepares to list in New York, AFP takes a look at a sector built from scratch just 12 years ago.
Bitcoin
On October 31, 2008, in the wake of the financial crisis, one or more anonymous people, hidden behind the pseudonym Satoshi Nakamoto, published the founding white paper of bitcoin.
cryptocurrency
The goal was to create a means of payment, the security of which would not be overseen by a central bank or financial organisations, but instead regulated by software with rules almost impossible to alter.
While anybody can “mine” for new bitcoins, to do so requires giant data centres — leading to platforms such as Coinbase providing a way of trading in cryptocurrencies.
An investment despite bitcoin’s volatility and limitations as a means of payment is being seen as a store of value to rival and even one day potentially surpass gold as a haven investment in the face of high inflation for example.
In Nigeria, where the naira currency has shed 50 percent of its value against the dollar in recent years, it is claimed that a third of inhabitants have used cryptocurrencies.
After bitcoin’s value crashed in 2018, it rebounded and has smashed records since late last year — rocketing from around $12,000 in October to more than $60,000 a month ago.
Against this backdrop, central banks and market regulators warn about the volatility’s impact — especially on small investors who risk suffering big losses.
But it is clear that some individuals and companies have made huge gains from bitcoin, while major central banks are working on their own potential digital currency projects.
Electric car giant Tesla has invested $1.5 billion in bitcoin and in March began accepting the currency as payment.
Tesla’s multi-billionaire chief executive Elon Musk has used social media to espouse the merits of cryptocurrencies, helping to lift interest and prices.
Other cryptocurrencies
Numerous cryptocurrencies seek to compete with, or complement, bitcoin. Number two in the market is ethereum, which this week hit an all-time high above $2,000.
The cryptocurrency market as a whole is worth more than $2.0 trillion, according to specialist site Coinmarketcap, which lists more than 9,000 different cryptocurrencies.
Some are known as “stablecoins” as their value is tied to a traditional asset such as the dollar, helping to avoid the volatility shown by bitcoin.
Meanwhile, with bitcoin and other cryptocurrencies minted by solving puzzles using powerful computers that consume enormous amounts of electricity, environmental concerns cast a further shadow.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
The furore raised by the actions of the Central Bank of Nigeria’s (CBN) ban on cryptocurrencies exchanges across financial institutions are yet to die down even with the apex bank coming out during the weekend to throw more light on the issue. The CBN reacting to the comments, doubts and criticisms that trailed its regulatory directive to Deposit Money Banks, DMBS, to desist from transacting in and with entities dealing in cryptocurrencies said that the directive was not a fresh one, rather a reminder of an existing policy. According to the Bank the need to enforce an old directive to ensure oversight, enforce transparency and regulation for a volatile currency that is issued by largely anonymous entities and secured by cryptography that prevents due process was behind the circular the Bank issued last week.
The Bank’s Acting Director, Corporate Communications Mr Osita Nwanisobi stated that “As regards our recent policy pronouncement, it is important to clarify that the CBN circular of February 5, 2021 did not place any new restrictions on cryptocurrencies, given that all banks in the country had earlier been forbidden, through CBN’s circular dated January 12, 2017, not to use, hold, trade and/or transact in cryptocurrencies. Indeed, this position was reiterated in another CBN Press Release dated February 27, 2018.
The statement noted that the CBN’s position on cryptocurrencies is not an outlier as many countries, central banks, international financial institutions, and distinguished investors and economists have also warned against its use.
The apex bank reminded Nigerians that the directive was not an isolated case considering global trend among many countries, international finance and banks finance and investors to take appropriate safeguards based of the significant risks that transacting in cryptocurrencies portend- risk of loss of investments, money laundering, terrorism financing, illicit fund flows and criminal activities. Pointing out that countries such as “China, Canada, Taiwan, Indonesia, Algeria, Egypt, Morocco, Bolivia, Kyrgyzstan, Ecuador, Saudi Arabia, Jordan, Iran, Bangladesh, Nepal and Cambodia have all placed certain levels of restrictions on financial institutions facilitating cryptocurrency transactions.
“In China, for example, cryptocurrencies are completely banned and all exchanges closed as well. Banks and other financial institutions are not allowed by law to transact or deal with cryptocurrencies. China’s Central Bank, called the Peoples Bank of China (PBoC) has provided several directives ruling out the use of these currencies. The PBOC views cryptocurrencies as illegal because they are not issued by any recognized monetary institution and do not hold any legal status that can make them equivalent to money. Hence banks and all stakeholders are strongly advised against their use as a currency.
“Even famed investor Warren Buffett has called cryptocurrencies “rat poison squared,” a “mirage,” and a “gambling device.” Mr. Buffett believes it is a “gambling device” given that they are mostly valuable because the person buying it does so, not as a means of payment; but in the hope they can sell it for even more than what they paid at some point.
“During an online forum hosted by the Davos-based World Economic Forum few weeks ago, Andrew Bailey, the Governor of the Bank of England, highlighted the extreme price volatility of cryptocurrencies as one of the biggest flaws and explained that this flaw makes it impossible for them to be used as a lasting means of payment.
Explaining further, the CBN said that “in light of the fact that they are issued by unregulated and unlicensed entities, their use in Nigeria goes against the key mandates of the CBN, as enshrined in the CBN Act (2007), as the issuer of legal tender in Nigeria. In effect, the use of cryptocurrencies in Nigeria are a direct contravention of existing law.
“It is also important to highlight that there is a critical difference between a Central Bank issued Digital Currency and cryptocurrencies. As the names imply, while Central Banks can issue Digital Currencies, cryptocurrencies are issued by unknown and unregulated entities.
“Second, the very name and nature of “cryptocurrencies” suggests that its patrons and users value anonymity, obscurity, and concealment. The question that one may need to ask therefore is, why any entity would disguise its transactions if they were legal.
“It is on the basis of this opacity that cryptocurrencies have become well-suited for conducting many illegal activities including money laundering, terrorism financing, purchase of small arms and light weapons, and tax evasion. Indeed, many banks and investors who place a high value on reputation have been turned off from cryptocurrencies because of the damaging effects of the widespread use of cryptocurrencies for illegal activities. In fact, the role of cryptocurrencies in the purchase of hard and illegal drugs on the darknet website called “Silk Road” is well known. There have also been recent reports that cryptocurrencies have been used to finance terror plots, further damaging its image as a legitimate means of exchange. It said that the recent evidence now suggests that some cryptocurrencies have become more widely used as speculative assets rather than as means of payment, thus explaining the significant volatility and variability in their prices.
In comparison to Fiat Money, which is accompanied by full faith and comfort of a country or Central Bank, cryptocurrencies , the CBN said, “cryptocurremncies do not have any intrinsic value and do not generate returns by themselves. When one buys a stock, say of a conglomerate in the Nigeria Stock Exchange, its price reflects the activity and production of that conglomerate and the value people place on their goods and/or services. This price may rise as the conglomerate produces better goods/services and probably gains greater market share. The reverse would be true if the conglomerate does not innovate to improve the quality of its goods/services. In other words, the price of that stock reflects market fundamentals.
“In contrast , cryptocurrencies do not have fundamentals and would never have fundamentals. Investors only buy in the hope that its use and acceptability will rise, thereby pushing up its demand. Accordingly, the CBN said its actions are not in any way, shape or form inimical to the development of FinTech or a technology-driven payment system.
“To the contrary, the Nigerian payment system has evolved significantly over the last decade, leapfrogging many of its counterparts in emerging, frontier and advanced economies propelled by reforms driven by the CBN. This is evident from the variety of participants, products, channels, cutting-edge technology in the payments system. It is also validated by the astronomical growth of volume/value of transactions and the fact that Nigeria is an investment destination of choice for international financial technology companies because of CBN’s policies that have created an enabling investment environment in the payments system.
These developments in the payments and settlements space, it further explained, have helped to grow the financial system, improving financial inclusion, the quality and convenience of financial services and has also created millions of direct and indirect jobs for teeming youth populations in the country.
“The innovations in Nigeria’s payment system were catalyzed by regulatory reforms driven by the CBN which entailed the issuance of a raft of guidelines and regulations on Operations of Electronic Payments Channels in Nigeria; Transaction Switching; Card Issuance and Usage, Licensing of payment service providers; Mobile Money Services, Electronic Payments of Salaries, Pensions, Suppliers and Taxes, Licensing Super Agents in Nigeria; and use of USSD for Financial Services in Nigeria, Super Agents and Agent Banking Operations and Payment Service Banks to mention a few.
The robust regulatory framework put in place by the Bank opened up the payment system to innovation with several new players across in the following licensing categories- Payment Terminal Service Providers (PTSPs), Payment Solution Service Providers (PSSPs), Mobile Money Operators (MMOs), Payment Terminal Application Developers (PTSAs), Switches, Super Agents, Agents and Payment Service Banks (PSBs) This has created both direct and indirect jobs for Nigeria’s youth population.
According to the CBN, the recent regulatory directive became necessary to protect the financial system and the generality of Nigerians (including the youth population) from the risks inherent in crypto assets transactions, which have escalated in recent times, with dire consequences for the integrity of the financial system and financial stability.
“Due to the fact that cryptocurrencies are largely speculative, anonymous and untraceable they are increasingly being used for money laundering, terrorism financing and other criminal activities. Small retail and unsophisticated investors also face high probability of loss due to the high volatility of the investments in recent times.
“In light of these realities and analyses, the CBN has no comfort in cryptocurrencies at this time and will continue to do all within its regulatory powers to educate Nigerians to desist from its use and protect our financial system from activities of fraudsters and speculators.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
When the pioneering cryptocurrency Bitcoin came on the scene, many people assumed this currency would be most relevant for people in the developed world. However, African millennials are rapidly upending stereotypes about Bitcoin adopters.
Bitcoin
Why Bitcoin Is So Attractive For Young Africans
Some commentators believe that the recent growth in Bitcoin prices represents the inflation of a fiscal bubble. Still, many other financial experts believe Bitcoin’s exponential rise is here to stay. The incredible explosion of Bitcoin prices has proven difficult to resist for people who are desperate to get into investing. Many thousands of young Africans are currently betting big on Bitcoin.
For years now, Africans across the continent have adopted technology with great rapidity. In Kenya, Uganda and Nigeria, smart phone adoption among young people is near-universal. Considering this technical fluency, it will surprise few that so many African millennials have embraced the potential of Bitcoin. Though no one can precisely predict Bitcoin’s immediate future, this currency seems well-poised to remain vital and relevant for the long term.
The Growth And Development Of Bitcoin
Bitcoin was invented in 2008 by an anonymous person going under the moniker Satoshi Nakomoto. Despite Bitcoin’s mysterious origins, the transparent nature of the currency has inspired millions to become passionate adopters. Unlike a traditional currency, Bitcoin does not rely on a central bank or national government to ensure its integrity. Instead, Bitcoin transactions are safeguarded and confirmed through a decentralized network. Because of its ingenious design, blockchain-based cryptocurrency is essentially impossible to counterfeit.
How Africans Use Bitcoin To Achieve Stability
In a place like Uganda, economic development and job opportunities have lagged far behind literacy. Even for college graduates, finding a steady job can prove trying in Uganda. In this difficult situation, it’s little wonder that many young Ugandans are turning to Bitcoin exchanges like OKEx as a potential guarantor of their future. Many Young Africans are unable to meaningfully participate in the stock market. Because of Bitcoin, these Africans are increasingly able to mirror the investment habits of other adventurous young adults around the world.
Of course, Bitcoin adoption extends beyond the ranks of those trying to get rich investing. In most parts of the world, cryptocurrency is primarily used by financial traders. Africans mainly use cryptocurrency for commerce. In commercial hubs like Lagos and Johannesburg, a fast-growing cohort is adopting Bitcoin in their daily lives.
For young Africans, transferring funds between nations can be a fraught process. Traditionally, transfers like this could cost the sender a whopping 20 percent. Because Bitcoin is a truly international currency, it can provide a better solution. The tech platform Bitpesa allows people to use Bitcoin to cheaply transfer cash across international borders. In addition to being affordable, this process tends to be relatively fast compared to bank transfers.
Slowly but steadily, cryptocurrency is revolutionizing how Africans conduct their financial lives. Even though Bitcoin’s value does fluctuate, many Africans find Bitcoin to be more reliable than their unstable local currency. Only time will tell how much Bitcoin will change the way Africans spend and live.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Cryptocurrencies are still not recognised as legal in South Africa, but dealing in or advising on them has now been declared a financial service requiring a license in the country. In a landmark move, the Financial Sector Conduct Authority (FSCA), the authority in South Africa in charge of regulating the market conduct of financial institutions that provide financial products and financial services, has issued a draft declaration classifying crypto assets as a financial product under the Financial Advisory and Intermediary Services (FAIS) Act. This is coming after similar moves by Mauritius and Nigeria.
Crypto Currency
“This Declaration is called the Declaration of crypto assets as a financial product, 2021,” the Declaration reads.
“This Declaration comes into effect on the date of [its] publication…on the website of the Authority,” it adds.
“Any person who, immediately before [the]…date of this Declaration…renders financial services in relation to crypto assets — (a) must submit an application for authorisation as a financial services provider…within 4 months of ….this Declaration; and
(b) [Such person] may continue rendering financial services in relation to crypto assets UNTIL— (i) the period to submit an application…has expired,” it further reads.
What Does This Declaration Mean In Summary?
Declaring crypto assets as a financial service means that any person that provides advice and/or intermediary services in relation to crypto assets must be licensed under the FAIS Act in South Africa. It also means that such person must comply with all of the requirements under the FAIS Act, the requirements of the General Code of Conduct for Authorised Financial Services Providers and Representatives, 2003 (General Code), the Determination of Fit and Proper Requirements, 2017 (F&P Requirements), etc.
“The intention behind the Declaration is to immediately capture intermediaries that advise on or sell crypto assets to consumers so as to provide adequate protection for consumers that are advised to purchase these products,” the FSCA states in an explanatory memo to the Declaration. “These protections should at least result in improved disclosures to customers that more effectively highlight the risks involved in investing in crypto assets and should ensure that a more robust advice process is adopted (including proper risk assessments) when intermediaries decide to advise customers to purchase crypto assets. Licensing of intermediaries is also necessary to improve the quality of data for policymakers and regulators about the crypto asset environment, and to consider whether there is a need for further regulatory interventions.”
Does This Mean That Cryptos Are Now Legally Recognized In South Africa?
The explanatory memorandum to the Declaration says no.
“The Declaration in no way legitimises or gives credence to crypto assets, but is merely attempting to regulate intermediaries that are selling and advising customers to invest in crypto assets,” the explanatory memo reads. “It is envisaged that this will either result in customers making more informed decisions when purchasing crypto assets or potentially in a decline in intermediaries attempting to advise on and/or sell crypto assets. It will also reduce instances of fraudulent activity where players purport to be selling investments in crypto assets but are in reality absconding with customer funds.”
How Would Affected Crypto Businesses Cope In The Meantime Before Obtaining The Required Licenses?
The FSCA states that acknowledges the impact that the draft declaration will have on businesses that are currently furnishing financial services in relation to crypto assets, and more specifically the fact that such business would not be able to operate legally unless they have obtained a FSP licence in terms of section 8 of the FAIS Act.
“For this reason, various “transitional arrangements” for businesses already operating in this space will be put in place before publication of the final declaration,” the FSCA states.
The transitional arrangements entail that such a business may continue its operations, but it must submit an application for authorisation as an FSP under section 8 of the FAIS Act within 4 months of the effective date of the final Declaration.
“The business will be allowed to continue its operations until its application for a licence has been granted or declined. If such business fails to submit an application within 4 months, it must cease its operations,” the authority further states.
According to the FSCA, any new business that wants to start furnishing financial services in relation to crypto assets after the effective date of the final Declaration will have to obtain an Financial Service Provider (FSP) licence before it can start furnishing such services.
Cryptocurrencies South Africa license Cryptocurrencies South Africa license
Is This The Final Declaration Of FSCA On This Or Is There Any More Thing?
No. This is an interim declaration. Hence, the FSCA invites the general public to comment on the draft regulations on or before 28 January 2021.
“Submissions on the draft Declaration must be made in writing on or before 28 January 2021 to the FSCA at FSCA.RFDStandards@fsca.co.za, using the submission template available on the FSCA’s website [at www.fsca.co.za],” the memo to the declaration states.
The Implication Of These For Crypto Startups And Traders In South Africa
Those who will be most affected by the new rules are established South Africa-based crypto platforms and exchanges offering crypto-related services in the country. However, there is still ambiguity around the rules as the declaration state that crypto assets are neither legitimised nor given credence to in the country. In any case, while the latest declaration may be a huge benefit to platforms that are able to append the badge of legitimacy from Financial Services Board of South Africa (FSB), now renamed to Financial Sector Conduct Authority (FSCA), nobody is really sure of how the government wants to wield its new cudgel.
“We’re not surprised by this, as we knew it was coming. We’re excited by it. A big hurdle for us is not being regulated by the FSCA, which has deterred many people from getting involved in this sector. I think regulations will help bring credibility to the crypto sector and help weed out those involved in crypto scams,” said Jon Ovadia, founder and CEO of crypto company Ovex. “At present there is no sure way of knowing who is legitimate and who is operating a scam, and the people are understandably confused by this, so we see this as a positive development.”
“VALR will always welcome prudent and appropriate regulation, particularly as it relates to consumer protection,” says VALR CEO Farzam Ehsani. “We have been working with the South African regulators for many years to inform a regulatory framework that does exactly this. It is important to note, though, that today’s draft declaration of crypto assets as a financial product under the Fais Act by the FSCA was not one of the 30 recommendations in the Position Paper on Crypto Assets that was published by the regulators in April this year.”
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
Paxful, a global peer-to-peer crypto marketplace has announced the addition of Bitsika to its platform, expanding its range of local payment methods in Nigeria. The addition enables users to deposit Cedis, Naira, Dollars, CFA through the Bitsika app to facilitate easy transactions.
CEO and co-founder of Paxful, Ray Youssef,
Speaking on the partnership, CEO and co-founder of Paxful, Ray Youssef, was quoted in a statement yesterday to have said: “As an organisation that constantly devises alternatives to ensure seamless and safe transactions for our users, we’re excited to add Bitsika as a payment option to the platform.
“With this partnership, users don’t have to worry about the restrictions on the US dollars imposed by African banks. Dollars can be held in a crypto form called BUSD. And with simplified security measures, there is no need to provide full Naira bank details, all that’s needed is a Bitsika tag.”
Bitsika was launched in 2019 to provide faster and easier payments across the globe while curbing the high costs of traditional money operators.
“With Bitsika you can load up money in a particular currency (say Cedis, Naira, USD, etc). Once done, you can now anonymously and instantly send the money to anyone who has a Bitsika cashtag, without fail,” the CEO of BitSika, Atsu Davoh said, adding, “Say goodbye to revealing the personal info of your Mobile Money number or Naira bank details every time you do or receive a transfer. And the best part is that all internal transfers are free.”
“There is a growing demand for crypto as Nigeria becomes one of the fastest-growing markets in the world. To deepen Paxful’s integration in the country’s crypto industry, the company has been recently recognized and accepted as a premium member of the Fintech Association of Nigeria. The partnership will help Paxful become an important part of the local financial ecosystem and protect its Nigerian users better.”
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
The world’s largest crypto exchange announced two subsidiary suspensions within one month with the announcement of the launching a new affiliate program in Africa after announcing the termination of its Uganda-based service. The Binance Africa Affiliate Program, which aims to promote Binance across the continent. According to the exchange, the new program is open to influencers, crypto enthusiasts and content creators across Nigeria, Ghana, Kenya, South Africa and Uganda.
A spokesperson for Binance was quoted as saying that Binance’s services in Africa include a fiat on-ramp for users from Nigeria, South Africa and Uganda. The exchange also provides peer-to-peer services for users from Kenya. The move follows Binance’s Oct. 27 announcement that it was shutting down its Uganda subsidiary. Binance Uganda is expected to be entirely terminated as of Nov. 28, 2020, while the closure of trading services is scheduled for Nov. 11. The exchange has already closed deposits and new registrations on Oct. 28, the announcement reads.
Binance Uganda was a fiat-to-crypto platform launched by Binance in June 2018, allowing users in Uganda to access crypto with the Ugandan shilling, or UGX, and promote crypto adoption in Africa. Despite the platform’s suspension, local users will be still able to deposit UGX through Binance’s main platform, the exchange’s representative noted. In September 2020, Binance delisted its native token Binance Coin (BNB) from Binance Uganda. Executives then explained that the BNB/UGX trading pair did not meet the exchange’s trading standards.
Binance Uganda is the second local exchange subsidiary to close in the last 30 days. On Oct. 19, Binance announcepd the upcoming termination of Binance Jersey. The exchange did not specify the reasons for shutting down operations in Jersey, instead stating that Binance.com “will continue to offer services to citizens of Jersey through compliant banking channels.” According to the Binance representative, the two suspensions are not connected, as “Binance Jersey and Binance Uganda are two independent entities.” The spokesperson noted that the exchange will continue to expand globally to provide more localized products and services for local users.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
The price of Bitcoin (BTC) rose by more than 2% in two hours to briefly top $14,000 as the polls were starting to close across many U.S. states on Nov. 3. At the time of writing, it was just under the key mark. Today is Election Day in the United States, and many crypto leaders are predicting Bitcoin could be the big winner in the highly contentious race. So far, officials have counted more than 400,000 ballots.
Bitcoin
Bitcoin has only been around for two U.S. presidential elections, but the price has risen significantly with each successive race. In November 2012, 1 BTC was valued at roughly $12, while the price in 2016 was more than $700. With the coin now reaching $14,309 at the time of publication, it represents a rise of 1,900% in four years, or roughly 140,000% in eight years.
This is the second time BTC has peaked above the $14,000 barrier in just one week, with crypto influencer “The Crypto Lark” noting that the daily candle had just closed above $14,000 for the first time since January 2018. Non-political factors, including increasing institutional interest and PayPal’s decision to offer crypto services, may explain the price rise. Engagement on social media has also increased this month.
According to analytics platform The Tie’s weekly report, the volume of tweets mentioning Bitcoin rose by 15% in October to reach 835,000. The Tie reported t BTC saw positive returns of 30% in October compared to 10% returns on Ether (ETH). As ballots continue to be counted across the U.S., many are predicting volatility among cryptocurrencies and the stock market.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
