Treasury’s proposed crypto ban could run into a legal challenge
Bowmans says ‘capricious’ suggestion to ban pension funds from investing in crypto assets might be unlawful
The market capitalisation of the global crypto universe is at almost $3-trillion but the National Treasury doesn’t want SA pension funds investing in an asset class worth three times the market value of the entire JSE and which has attracted everyone from Apple CEO Tim Cook to Tesla founder Elon Musk.
New draft amendments to Regulation 28 of the Pension Funds Act, published in the Government Gazette on October 29, state that no pension fund is allowed to invest directly or indirectly into crypto assets, which are defined as digital representations of values not issued by central banks that can be traded, invested or used for payment purposes. Crucially, the definition outlined in the gazette also specifically includes the distributed ledger technology, which underpins most crypto assets and is being used to develop new insuretech and mobile payment solutions...