The South African Intergovernmental Fintech Working Group (IFWG) regulatory sandbox has added two more crypto startups projects.
The two startups will be testing the regulatory treatment and associated regulatory reporting implications and obligations of crypto assets, specifically XRP, Bitcoin, and Bitcoin Satoshi Vision (BSV).
The two startups include:
- Mercury FX – Testing the regulatory treatment, and associated regulatory reporting implications and obligations of crypto assets (specifically XRP) being used for effective low-value cross-border remittances between South Africa and the UK, and vice versa. Testing will in the main be done in terms of the South African Exchange Control Regulations 1961,
- CentBee – Testing the regulatory treatment of crypto assets (specifically Bitcoin (BTC) and Bitcoin Satoshi Vision (BSV)) for low-value cross-border remittances between South Africa and Ghana and vice versa
The new listings above add to the list of the previous list of 4 firms bringing a total of 5 out of 6 products in the regulatory sandbox inaugural cohort now being blockchain and crypto-based.
Here is now an updated breakdown of the inaugural cohort currently testing with IFWG:
- The People’s Fund – a crowd-investing platform
- The Standard Bank of South Africa – blockchain-based cross-border foreign exchange transactions
- Investec Bank – custody services for crypto assets
- Xago – cross-border remittance treatment for Ripple (XRP)
- Mercury FX – cross-border remittance for XRP
- CentBee – cross-border remittance for BTC and BSV
The current IFWG Regulatory Sandbox testing phase is expected to last 6 months during which time the innovators will have worked with the various regulators to determine appropriate testing parameters, consumer protection measures and continued compliance with all regulatory requirements during the testing period.
IFWG works with South African financial sector regulators to demystify the regulatory landscape while providing a space forsafe exprimentation and actively advance innovation.
IFWG runs The innovation Hub – a collaborative effort that includes the participation of the following financial regulators in South Africa:
- The National Treasury
- The Financial Intelligence Centre (IFC)
- The Financial Sector Conduct Authority (FSCA)
- The National Credit Regulator
- The South African Reserve Bank (SARB)
- The South African Revenue Service (SARS)
- The Competition Commission
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