The Regulatory Status Quo Of Cryptocurrency Exchanges

The South African Cryptocurrency Market Place is currently facing scrutiny and a fair amount of uncertainty as a result of First National Bank (FNB) announcing on 20 November 2019 that they would be shutting down all bank accounts associated with cryptocurrency businesses. The decision will affect all three of the largest cryptocurrency exchanges currently in operation.¹ FNB has cited the uncertainty in the market stemming from a lack of regulation as the reason for the decision.²

The decision comes at a time where some countries continue to ban the use of cryptocurrencies, while others, such as Singapore and South Korea have begun the process of imposing stricter regulations. Without clear regulations, other South African banking institutions may be considering a similar move based on the same concerns regards a lack of regulatory guidance.