South Africa’s Reserve Bank to Introduce Stricter Cryptocurrency Regulations

At this point in time, there are several countries with a stricter economy, which impose currency controls in an effort to limit the amount of capital that is sent outside the nation.

Understanding currency controls

South Africa is one of these countries, given the fact that citizens are limited to being able to send 1 million rand abroad without declaration (roughly $68K). Following approval from the South African Revenue Service, citizens are able to send up to 10 million rand abroad, which is equal to approximately $628K. The purpose of this strategy is to help keep capital within the country, thus indirectly stimulating the economy. Numerous economic analysts have stated that strategies like this aren’t always effective from a long-term perspective, but they might induce the illusion that there is extra money available short-term.

Limiting crypto-based transfers abroad

Nevertheless, recent reports indicate that the South African Reserve Bank (SARB) will…