Globally, moves to regulate crypto and we anticipate the introduction of a clear South African regulatory regime likely by the end of 2022. Regulatory certainty will have a host of positive spin-offs for the crypto sector. Crypto regulation is imminent in South Africa with formal guidelines expected to be introduced before the end of the year, say experts at South Africa’s largest cryptocurrency exchange Luno. In the US, where regulation allows for entry into crypto, firms like Fidelity, Goldman Sachs and JP Morgan are entering the crypto market and the Proshare Bitcoin ETF – the world’s first Bitcoin ETF – saw record inflows into the fund. Once regulation is finalised, financial advisors will be able to propose crypto products and services to clients. Luno is partnering with such businesses to ensure that customers can enter crypto investments through their trusted financial advisors.
Open banking where financial institutions share information about customers is already quite prominent in the UK and Europe. It is quick and information can easily be shared across multiple institutions. Ultimately, systems that make transacting simpler are sure to gain traction. As crypto adoption grows, people are becoming more aware of the importance of keeping their crypto safe. The shift away from being purely office-bound has its perks but seeing significant vulnerability in corporations which leads to users being tricked into sharing corporate account information or money.