Standard Bank, Africa’s largest bank, is actively monitoring cryptocurrency developments in South Africa but is not entering the market right away.
“Being in tune with global trends is important, but we don’t necessarily need to be the trailblazers in certain areas,” said Lungisa Fuzile, CEO of Standard Bank South Africa, in a Bloomberg Television interview with Jennifer Zabasajja. “Being rapid responders is often the better strategy.”
Standard Bank, Africa’s largest lender by assets, would instead monitor the evolving landscape of digital currencies while keeping wary of possible threats.
Most South African banks have previously refrained from providing banking services to cryptocurrency platforms, citing risk considerations and a lack of formal regulation for these digital entities in the country.
The South African Reserve Bank has, however, initiated working groups to delve into the realm of digital assets and is encouraging banks to provide services to cryptocurrency exchanges. This approach would allow the regulator to maintain better oversight of the sector.
Simultaneously, the Financial Sector Conduct Authority is preparing to mandate licensing for crypto exchanges in South Africa by year’s end. This will position Africa’s most advanced economy as the continent’s first to incorporate cryptocurrency regulations into its legal framework.
As per the Finders Cryptocurrency Adoption Index, over a tenth of South Africans currently possess some form of cryptocurrency.
