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Cryptocurrency regulatory working group to be set up by South African government

Akash Anand

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Cryptocurrency regulatory working group to be set up by South African government
Source: Unsplash

The South African government has recently announced that they will be taking a more concrete and decisive approach to the concept of cryptocurrencies such as Bitcoin Cash [BCH] and Ethereum [ETH], according to a letter by Tito Mboweni, the Minister of Finance of South Africa.

The official also stated that the government was establishing a “cryptocurrency asset regulatory working group” that will focus on investigating and researching all aspects of digital assets as well as blockchain technology. The minister further detailed on the members involved in the task force, a roster that includes the Treasury, the Reserve Bank, Financial Intelligence Centre, the Financial Sector Conduct Authority and the SA Revenue Service [Sars]. Mboweni had said:

“It is anticipated that, following broad industry comment and participation, the crypto assets regulatory working group will be ready to release a final research paper on the subject during the course of 2019.”

The Financial official added that the revenue bodies were not able to monitor the profits and losses generated by cryptocurrency transactions because of the loopholes prevalent in the existing financial framework. In his words:



“However, work is underway within Sars to consider the amendment of the tax forms for the 2019 tax season in order to cater for the description of other assets (which will include cryptocurrencies) by means of a specific description field on the form.”

The South African finance minister went on to say that taxpayers have claimed that cryptocurrency transactions come under the ambit of ‘other trade income’ or ‘other trade loss’. This included cited examples of transactions involving Bitcoin Cash [BCH], Litecoin [LTC], Ethereum [ETH] and Zcash [ZEC].

This concept of cryptocurrencies is not new to the African country as just a few months back, South Africa witnessed the ICO launch of SAFCOIN, a proposed stepping stone for African citizens to learn about digital assets as a whole. During the launch, Neil Ferreira, the CEO, and co-founder of SAFCOIN, had said:

“Blockchain cryptocurrency is a confusing and unfamiliar concept to many Africans, which is preventing widespread adoption. With SAFCOIN, we hope to educate more people about the benefits of cryptocurrency and help them understand how and where to trade, so that they can be part of the global digital currency revolution and Africa’s cryptocurrency history.”





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XRP

XRP shorts overtake XRP longs as USD shorts increase 85 percent on April 17

Akash Anand

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XRP shorts overtake XRP longs as USD shorts increase 85 percent on April 17
Source: Pixabay

The cryptocurrency market’s volatile behavior was reflected in the ‘buy-in and sell’ sentiments. Despite the bear market taking over again, analysis of the market shows that there are some silver linings. XRP, the third largest cryptocurrency in the market, has not had a fantastic start to 2019 and this was even shown during the recent bullish spike.

XRP was one of the worst performers among the top 10 club at a time when some of the other currencies saw double-digit gains and Bitcoin [BTC] broke the $5000 barrier. New analysis, though, points to the fact that there has been a significant rise in XRPUSD longs on Bitfinex, some even registering record gains. Reports from BehindtheLedger stated that:



“Some are discussing record high XRPUSD longs on Bitfinex. It’s good to look at the ratio of shorts to longs (or vice versa if you prefer) rather than just the longs though. Doing so reveals that shorts have increased more than longs in the past few days.”

At a time when the XRP shorts are on a high, the USD shorts were up by a massive 85 percent on April 17. The analysis from behindtheledger also admitted:

“This isn’t a price prediction and frankly, this indicator probably isn’t reliable

But it’s always good to look at both sides of the equation.”

XRP’s trade has been majorly influenced by developments in its realm with the last major claim coming from Coincheck as the organization provided over-the-counter trading support for Ethereum and XRP on its platform. The exchange had announced:

“ETH XRP has been added to the target currency for large OTC transactions! We are pleased to announce that ETH and XRP have been newly added as target currencies at the Large OTC Trading Service, which has started on April 1, 2019.”





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