South African government launches a working group to study cryptocurrency regulation

South African finance minister Tito Mboweni has announced the establishment of a cryptocurrency assets regulatory working group. As reported by a local news outlet BusinessLive, the group will be tasked with researching the technology to develop a “cohesive governmental response to cryptocurrencies and a unified intergovernmental regulatory framework.” The minister noted that the group will also look into the potential implementations of tokens and blockchain technology within the country.

“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,” said Mboweni.

The new group will include representatives from the Financial Intelligence Centre, the Treasury, the Financial Sector Conduct Authority, The Reserve Bank and the SA Revenue Service (Sars). Aside from taking part in the research, Sars is currently working to modify next year’s tax return forms to include virtual currencies. Thus far, South African taxpayers had to include such trades in form of ‘other trade income’ or ‘other trade loss,’ added Mboweni.