If a document could roll its eyes dismissively and let out a long, anguished sigh, the one compiled by SA regulators on cryptocurrencies would do so. Put together by the intergovernmental fintech working group (IFWG), the "Consultation Paper on Policy Proposals for Crypto Assets" does little to hide the regulators’ discomfort with the concept of cryptocurrencies. The IFWG’s ambivalence is clear. It rejects the term "cryptocurrencies", insisting instead that these electronic tokens be called "crypto assets". For a start, they have been used as commodities and securities rather than just currency. They further fall short on the currency measure because they are not a particularly good or stable store of value, are only accepted as a medium of exchange in select circles and aren’t widely used as a unit of accounting. While no financial regulator wants to give control of its currency to entities beyond the reaches of its authority, authorities have to adapt, given the increasing use of ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now