Old rules no good for regulating new cryptocurrencies

Simi Siwisa

Head of Absa Group Public Policy

Digital currencies have been around for a decade, yet the regulatory systems governing them are fragmented, ineffective, and in some countries, non-existent. That allows illicit activities to flourish, from fraudulent Bitcoin traders who disappear with your cash, to the financing of terrorism and international money laundering. Digital currencies are the inevitable future, so international coordination and individual country action is required to close the legal loopholes that allow cryptocurrency crime to flourish.

This year, the Intergovernmental Fintech Working Group Innovation Hub in South Africa announced the launch of Project Khokha 2, which explores the policy and regulatory implications of innovation in financial markets driven by distributed ledger technology.