Industry insiders suggest that the upcoming South African elections on May 29 will not impact the nation’s cryptocurrency agenda. According to Mpumelelo Ndamane, CEO of South Africa-based crypto wallet provider Nuud Money, the elections will have no bearing on cryptocurrencies. Ndamane emphasized the stability maintained over the past 30 years to ensure independence of the South African Reserve Bank and FSCA from politics, assuring that the crypto policy will remain unaffected.

John McCarthy, general counsel for global regulatory affairs at Fireblocks, echoed similar sentiments, highlighting that most developments in the digital asset sector in South Africa are focused on addressing apolitical issues. McCarthy noted that an intergovernmental working body has played a significant role in addressing these apolitical matters, leading to a cohesive approach.

Recently, the Financial Sector Conduct Authority (FSCA) in South Africa announced plans to issue licenses to 60 digital asset platforms, with a deadline for exchanges to apply by November 30. This move marks a crucial step in regulatory developments, as regulators integrated cryptocurrencies into the nation’s Financial Advisory and Intermediary Services Act in 2022. Currently, three exchanges – VALR, Luno, and Zignaly – have already obtained licenses.

Maurice Crespi, a partner at South Africa-based law firm Schindlers Attorneys, commended this proactive approach as a means to regulate the digital asset space. Crespi emphasized that this step aligns with global trends and recognizes the increasing importance of blockchain technology in modern finance.

Additionally, the South African National Treasury’s Intergovernmental Fintech Working Group is evaluating the impact of stablecoin use and tokenization in domestic financial markets. The group is expected to present its findings to the government by December 2024.

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