SA Crypto Blends, Florauna based in Corner West and Brits (2026)

16/05/2023

KEY POINTS
The Lightning Network slashes the cost of bitcoin transactions to virtually zero and enables nearly instantaneous cash payments around the planet.
This so-called "layer two" technology is built on top of bitcoin's main chain.
CNBC spoke to entrepreneurs in Nigeria and South Africa who have integrated the Lightning Network into mobile money.

ACCRA, Ghana — Block CEO Jack Dorsey and his top brass descended on Accra for the inaugural Africa Bitcoin Conference in December to talk about one of the most potentially disruptive and transformative alternatives to the continent's existing financial system: bitcoin.

Since its inception in 2008, this unfamiliar form of money has alternatively been disdained as an absurdly complex toy for libertarian techies, a legalized form of gambling, a speculative bet to get rich quick, and a vehicle for criminals and fraudsters to obscure the origins of their ill-begotten gains.

But this parallel financial system can also serve a tangible social good, offering an onramp to the financial system for people who would otherwise be left out. In countries where the vast majority of the population is unbanked, national currencies are no longer a safe store of value, remittances comprise a hefty portion of GDP, and international sanctions complicate connections to the global economy, a virtual currency that doesn't require an intermediary to approve transactions can be a vital lifeline for survival.

As cryptocurrency continues to rise in prominence and becomes a growing flashpoint for regulators, Dorsey and his deputies are providing an essential counternarrative: Bitcoin brings financial power to people who would otherwise have none.

"It doesn't matter to me if the price goes down or up, because I can still use bitcoin as a vehicle to move money around the world instantaneously," said Mike Brock, the CEO of TBD at Block, a unit which focuses on cryptocurrency and decentralized finance.

"I can exchange dollars for bitcoin and then bitcoin for Brazilian rial. There is a market for bitcoin in every corner of the world today," continued Brock.

08/05/2023

BRICS, a set of countries grouped as an alternative to the G7, is now the world’s largest gross domestic product (GDP) bloc, taking purchasing power parity into account, according to reports from Acorn Macro Consulting. Powered By China’s growth, the group now contributes 31.5% to the global GDP, while the G7 provides 30.7%.

BRICS Countries Shift the Economic Scale
BRICS, a group of countries comprising Brazil, Russia, India, China, and South Africa, has emerged as the world’s largest GDP bloc, leaving the G7 economies behind. According to data provided by Acorn Macro Consulting, a U.K.-based macroeconomic research firm, the BRICS bloc now contributes 31.5% to the global GDP, surpassing the G7, which currently accounts for just 30.7%.

A chart provided by Richard Dias, a consultant at Acorn, shows the constant growth of BRICS as compared to the G7 (Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and the European Union), and also predicts that the gap will only grow bigger in the coming years.

The big push for the BRICS bloc comes from the growth of the Chinese economy, which surpassed the U.S. GDP measured taking purchasing power parity (PPP) into account, in 2014. According to International Monetary Fund (IMF) estimations, China has a GDP PPP of $30 trillion, ranking first in the world, while the U.S. trails in second place with $25 trillion.

Further Growth Expected
The gap between these groups and the economic influence of BRICS could keep growing in the short term, as more countries are interested in joining the ranks of the alternative group. In February, Anil Sooklal, South Africa’s ambassador to BRICS, stated that this year would be crucial for the expansion of the bloc, as the members were already defining the recommendations and criteria for the acceptance of new members.

Significant economies have already applied to be members of the group, with Saudi Arabia, Egypt, and Bangladesh having acquired equity in the New Development Bank, BRICS’ funding organization. Other countries like Iran, Algeria, Argentina, and Turkey are also interested in joining the bloc.

While it is still only a project, in July 2022 BRICS countries proposed the idea of issuing their own currency in order to undermine the dominance of the U.S. dollar when it comes to international settlements. More recently, President Xi of China and President Putin of Russia have decided to push the Chinese yuan as a settlement currency between Russia and emerging economies in Latam, Asia, and Africa.

07/05/2023

One of South Africa’s largest financial services groups, Old Mutual, has reportedly been appointed manager of the ZARP stablecoin project’s cash reserves. Founders of the stablecoin are hopeful that the appointment of one of the country’s oldest financial services companies will help bolster confidence in the digital currency.

Enhancing Credibility of the Stablecoin
The South African financial services giant Old Mutual has reportedly been designated the manager of the cash reserves of the local currency-backed stablecoin — the zarp. By appointing Old Mutual, one of the oldest wealth management companies in South Africa, issuers of the stablecoin hope to enhance confidence in the digital currency project, a report has said.

According to a Mybroadband report, the stablecoin that Simon Di**le and Kenny Inngs founded in 2021 has been South Africa’s only bank-approved and audited stablecoin. Old Mutual’s coming on board is expected to enhance the credibility of the cryptocurrency, the report added.

Remarking on the likely impact of Old Mutual Wealth’s association with the stablecoin, Di**le, the managing director (MD) of ZARP, said:

We set out to partner with the absolute best of the best in terms of managing our cash reserves, so naturally, Old Mutual Wealth is a perfect fit.

Old Mutual Interested in Technology Backing Digital Currencies
For his part, Farhad Sader, the MD at Old Mutual Wealth, suggested that his company’s partnership with the stablecoin project ensures the financial services giant is not left behind.

“It pushes the boundaries of innovation, historically dominated by traditional businesses. This space will evolve, and our partnership will enable us to be a part of the journey,” Sader explained.

The MD added that while the many concepts of decentralization are not exactly new, his company is very interested in the underlying technology.

In addition to its designation as South Africa’s “most trusted cryptocurrency project,” the zarp stablecoin is regularly audited. According to the report, the auditing and the release of an attestation report have been ongoing “from day one.” As shown by an attestation report published on May 16, the zarp stablecoin had tokens in circulation worth around $3.9 million.

07/05/2023

The Minister of Finance of South Africa, Tito Mboweni, explained in a letter on Jan. 2 that the region’s government has created a regulatory working group dedicated to cryptocurrencies. According to Mboweni, the working group includes representatives from multiple South African agencies and aims to produce a comprehensive regulatory response to the growing digital asset economy.

South African Regulatory Working Group Aims to Provide a Cohesive Regulatory Response to Cryptocurrencies

SOUTH AFRICA'S FINANCE MINISTER MBOWENI.

The cryptocurrency economy has grown significantly in South Africa according to multiple studies conducted last year. Last November, research commissioned by the firm Luno indicated that 70 percent of South African consumers define digital currencies as an investment, with respondents also claiming to hold cryptocurrencies over the long term. The peer-to-peer exchange Paxful has seen a 25 percent increase in 2018 and Localbitcoins volumes have swelled as well. The South African government has noticed the rising trend and members of the SA Revenue Service (Sars), South African Reserve Bank, Treasury, Financial Sector Conduct Authority, and Financial Intelligence Centre have formed a cryptocurrency working group to better grasp the situation.

In a written letter to parliament, Finance Minister Tito Mboweni explained the new regulatory group will dedicate resources toward a governmental response to cryptocurrencies and the technology’s surrounding economy. Additionally, Mboweni detailed the group plans to publish a study of its findings and some of the working group’s ideas toward a unified cryptocurrency regulatory standard throughout South Africa.

“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,” Mboweni emphasized in his letter to Parliament.

07/05/2023

In this edition of Exchanges Roundup, we look at a Luno executive’s belief that the South African government will introduce “open” crypto regulations. We also focus on Bitstamp, which expects a 1250x increase in matching speed after it integrates a customized version of Cinnober’s trading engine software into its platform, as well as the motivation behind a Dutch exchange’s decision to advertise on a bus.

CONSUMER PROTECTION;

recent interview, Marius Reitz, Luno’s South Africa country manager, said he expects the South African government to pass “open” regulations on the development of consumer protection protocols.

“I think the regulation will be relatively open. I don’t see regulators trying to stifle innovation,” Reitz told Mybroadband. “I think they will focus on the consumer protection side, making it mandatory for exchanges to register as reporting entities.”

Bitstamp Expects 1250X Speed Increase

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NEWS
May 7, 2023

BTC$28901.47-0.22%ETH$1913.66+0.52%BNB$323.66-0.07%XRP$0.46-0.37%ADA$0.38-0.73%STETH$1913.04+0.50%DOGE$0.08-1.79%HEX$0.06-0.16%MATIC$0.97-0.79%SOL$22.63+2.39%WETH$1921.30+1.07%DOT$5.68-0.25%TRX$0.07-1.12%LTC$84.12+0.21%BUSD$1.00-0.04%SHIB$0.00-0.89%AVAX$16.60-0.65%DAI$1.00-0.01%WBTC$28912.96-0.19%UST$0.25-0.01%
BTC$28901.47-0.22%ETH$1913.66+0.52%BNB$323.66-0.07%XRP$0.46-0.37%ADA$0.38-0.73%STETH$1913.04+0.50%DOGE$0.08-1.79%HEX$0.06-0.16%MATIC$0.97-0.79%SOL$22.63+2.39%WETH$1921.30+1.07%DOT$5.68-0.25%TRX$0.07-1.12%LTC$84.12+0.21%BUSD$1.00-0.04%SHIB$0.00-0.89%AVAX$16.60-0.65%DAI$1.00-0.01%WBTC$28912.96-0.19%UST$0.25-0.01%
EXCHANGES
by Samuel Haig

Nov 6, 2018
23
Exchanges Roundup: Luno Expects 'Open' South African Rules, Bitstamp Updates Engine

In this edition of Exchanges Roundup, we look at a Luno executive’s belief that the South African government will introduce “open” crypto regulations. We also focus on Bitstamp, which expects a 1250x increase in matching speed after it integrates a customized version of Cinnober’s trading engine software into its platform, as well as the motivation behind a Dutch exchange’s decision to advertise on a bus.

Also Read: GMO Internet Sees Huge Leap in B*H Mining for October

Consumer Protection
Exchanges Roundup: Bitstamp Updates Engine, Luno Expects 'Open' South African RegulationsIn a recent interview, Marius Reitz, Luno’s South Africa country manager, said he expects the South African government to pass “open” regulations on the development of consumer protection protocols.

“I think the regulation will be relatively open. I don’t see regulators trying to stifle innovation,” Reitz told Mybroadband. “I think they will focus on the consumer protection side, making it mandatory for exchanges to register as reporting entities.”

Bitstamp Expects 1250X Speed Increase
Exchanges Roundup: Bitstamp Updates Engine, Luno Expects 'Open' South African RegulationsBitstamp has revealed a new partnership with Cinnober, a trading and financial technology provider. The exchange plans to replace its in-house matching engine with a licensed and customized version of Cinnober’s “Tradexpress Trading Engine” software.

“While Bitstamp’s matching engine was already very good by crypto standards, this will put us in the same league as traditional exchanges with decades of experience,” stated David Osonjik, the chief technology officer of Bitstamp.

Osonjik said that he expects Bitstamp’s order-to-matching speed to increase by a factor of 1250. He added that throughput will likely increase by a factor of 400.

03/05/2023

Mirror Trading International (MTI), a South African bitcoin investment company at the center of a cease and desist order issued by the Texas State Securities Board (TSSB), is pushing back allegations that it is running a Ponzi scheme or a scam.

MTI CEO Johann Steynberg issued a statement assuaging MTI members that the organization is in discussion with the South Africa Financial Services Conduct Authority (FSCA).

Steynberg, who was issued a cease and desist order alongside three other individuals who reside in the United States, also says he is in correspondence with TSSB on this matter.

In a report carried by Global Crypto, a South African crypto website, Steynberg insists in a letter that his organization is not running a Ponzi scheme as members have full control of their bitcoins at all times.

“Another important point which differentiates MTI from Ponzi’s and scams is that members have full control over their funds (bitcoin) at all times.

Members can add or withdraw their funds (bitcoin) at any time, with no complications and no fees,” reads part of Steynberg’s letter.

Steynberg claims that none of its 75,000 plus members worldwide “has ever complained” or has failed “to withdraw their BTC whenever they have opted to.”

However, Steynberg’s letter, which closely resembles one being circulated to members, does not directly address TSSB’s core allegations.

Instead, the letter focuses on addressing the perception and characterization of MTI as a Ponzi scheme.

According to the TSSB cease and desist order, MTI and its U.S.-based affiliates allegedly violated the state’s laws by operating unregistered businesses.

Additionally, TSSB alleges that Steynberg was perpetrating an international multilevel marketing fraud and recruiting salespeople who do not have securities trading licenses. The regulator said Texans are among the victims.

Still, Steynberg says MTI will in the coming period be placing “great emphasis on engaging with and working with any regulator with a clear purpose at all times.”

The online passive income building industry — in which MTI has been operating for 15 months — has a notorious and demonstrated reputation for scams and Ponzi schemes, admits Steynberg.

Meanwhile, Steynberg says his organization wants to be “fully compliant as a professionally managed company” that delivers to its stakeholders for the foreseeable future.

02/05/2023

Muyita remarked that Wagagai will start production this year and the company has invested $200 million so far into the construction of the refining station. Now gold’s scarcity, however, also stems from the difficulty of mining the ore, and while Muyita claims there’s 320,158 metric tons of gold, there’s only 2,500 to 3,000 mined each year.

Moreover, South Africa is the world’s largest producer and but there’s also significant gold mining happening in the U.S., Canada, Australia, Russia, and China. The precious metal’s scarcity proposition however is constantly put to the test by surprise ore deposits found worldwide.

For instance, at the end of October 2020, Bitcoin.com’s newsdesk reported on a surprise find of approximately 40 million troy ounces of gold in Russia’s Siberian region. In August 2020, a historical region of Central Europe, situated in Poland and called Silesia, discovered massive gold deposits in the area.

In March 2021, a Yemeni freelance journalist based in the capital Sana’a, Ahmad Algohbary, reported on a colossal mountain of gold discovered in the Congo. While the reports noted that the Congo mountain of gold had no confirmed estimates as to how much gold was discovered, it was said that artisan miners were smuggling the gold.

Smuggling gold is very prominent in Africa according to a United Nations (UN) report that says production in the Congo region “continues to be systematically underreported.” This means that while statistics say there’s only 2,500 to 3,000 metric tons mined each year, a significant amount of mined gold may be entering the market that’s not being reported.

02/05/2023

South Africa’s financial regulators, including the central bank, have recommended in their policy paper that the crypto regulation adopted be in compliance with the standards set by the FATF,including the infamous “travel rule.”

The Financial Intelligence Centre (FIC) will be the supervisory authority of crypto service providers. All CASPs will be required to register with it as an accountable institution and comply with AML/CFT requirements. “This will include conducting customer identification and verification, conducting customer due diligence, keeping records, monitoring for suspicious and unusual activity on an ongoing basis, reporting to the FIC any suspicious and unusual transactions, reporting cash transactions of R25 000.00 [$1,329] and above,” the paper explains, adding:

CASPs will be required to implement Recommendation 16 (‘the travel rule’) of the FATF recommendations.

The regulators have also proposed that the Financial Sector Conduct Authority be “the responsible authority for the licensing of ‘services related to the buying and selling of crypto assets'” and “specific conduct standards should be developed for these services.” The policy paper further states that “The Financial Surveillance Department of the SARB should assume the supervisory and regulatory responsibility for the monitoring of illegitimate cross-border financial flows in respect of crypto asset services.”

Further, cryptocurrency activities will continue to be monitored by the Intergovernmental Crypto Assets Regulatory Working Group. They will “remain without legal tender status and not be recognised as electronic money” and “not be allowed for the conduct of money settlements in financial market infrastructures,” the paper clarifies. All 30 recommendations can be found here.

02/05/2023

A number of South African regulators have jointly published a set of recommendations to establish a regulatory framework for cryptocurrency.. in compliance with the standards set by the FATF.

30 Recommendations in Compliance With the FATF Standards
The position paper published by the IFWG outlines 30 recommendations for the regulation of cryptocurrency and initial coin offerings (ICOs). Stakeholders and the public are invited to submit comments by May 15.

The first recommendation ensures compliance with the rules set by the FATF as described in the guidance for crypto assets and crypto asset service providers (CASPs) that the money laundering watchdog published in June last year. The FATF has since been actively enforcing its standards on member countries. CASPs include crypto trading platforms, ATMs, token issuers, funds and derivatives service providers, custodial wallets, and other custodial services. The policy paper adds:

It is recommended that entities providing crypto asset services be regarded as CASPs, taking cognisance of the revised Recommendation 15 of the FATF recommendations on new technologies and virtual assets.

02/05/2023

South Africa’s top financial regulators, including the South African Reserve Bank, have jointly released a policy paper with 30 recommendations for the regulation of cryptocurrency and related service providers. They aim to be in compliance with the cryptocurrency standards set by the Financial Action Task Force (FATF).

Top Regulators Publish Crypto Regulatory Policy
A number of top South African financial regulators published on Thursday a position paper to establish a regulatory framework for cryptocurrency. It contains 30 recommendations that are in compliance with the standards set by the Financial Action Task Force, the global money laundering and terrorist financing watchdog.

The position paper is a joint initiative by the South African Intergovernmental Fintech Working Group (IFWG) and the Intergovernmental Crypto Assets Regulatory Working Group. The former includes the Financial Intelligence Centre, the Financial Sector Conduct Authority (FSCA), the National Credit Regulator, the National Treasury, the South African Revenue Service (SARS) and the South African Reserve Bank (SARB). The group explained:

The purpose of this position paper is to provide specific recommendations for the development of a regulatory framework for crypto assets, including suggestions on the required regulatory changes to be implemented.

02/05/2023

Africans rank atop global cryptocurrency ownership rates, according to a new report by Arcade Research. South Africa ranks third globally with 13% of its internet users owning or using cryptocurrencies, while 11% of connected Nigerians own cryptocurrencies in the fifth-placed populous West African country.

Uganda, Nigeria, South Africa, Kenya, and Ghana are listed in the report among the top 10 countries where “cryptocurrency” is most searched on Google. Economic challenges work both ways, as the digital divide slows the adoption of cryptocurrency while high financial fees make virtual currencies an attractive alternative.

Africa also has some of the world’s most inflationary economies where fiscal indiscipline and controversial monetary policies sometimes erode citizens’ savings overnight. Apart from governments’ heavy hand, external factors such as sanctions and conflict also threaten savings, making cryptocurrency a less exposed investment.

Sub-Saharan Africa records $48 billion remittances annually but transaction fees go as high as 9%, while some mobile payment transfer services charge around 11%. Cryptocurrency use is also a way to undercut the disadvantages of centralization while eliminating high remittances cost.

Arcane Research notes lack of infrastructures such as crypto mining operations, supporting merchants, smartphone pe*******on, and internet connectivity as slowing the uptake of cryptocurrencies. With rural-majority populations in some countries, significant swaths of the continent are not electrified, limiting the reach of bitcoin and other digital assets. .

According to the report, lack of policy clarity, with close to 60% of African governments yet to announce their positions on cryptocurrencies, slows down adoption.
“Africa is one of, if not the most promising region for the adoption of cryptocurrencies,” said the report.

“This is due to its unique combination of economic and demographic trends. While the overall adoption is relatively low, the potential is enormous, the growth is rapid, and the development is likely to become defining for the cryptocurrency industry going forward,” it added.

01/05/2023

According to local media, leading South African financial institution FNB is denying allegations of a banking relationship with the recently collapsed crypto investment company, Africrypt. FNB also insists it did not enable the investment company’s transactions which helped Africrypt’s two directors disappear with billions of dollars in investor funds.

Disappearance of Investor Funds
The financial institution’s denial comes nearly two months after Africrypt abruptly stopped operating. At that time, the crypto investment firm’s management claimed Africrypt’s trading system had been breached. This breach compromised client accounts, wallets, and nodes, thus forcing Africrypt to freeze all accounts, the directors claimed.

However, shortly after the so-called breach, Africrypt directors Ameer Cajee and his brother Raees Cajee are alleged to have “transferred the crypto investment’s pooled funds from its South African account(s) through bitcoin on the blockchain in April 2021.” South African media reports estimate that as much as $3.6 billion in investor funds cannot be accounted for.

Meanwhile, in his response to a media inquiry, FNB spokesperson Nadiah Maharaj refused to acknowledge the existence of any relationship between FNB and Africypt. According to a media report, Maharaj, who cites client confidentiality restrictions, stated:

FNB once again confirms that it does not have a banking relationship with Africrypt. Due to client confidentiality, FNB cannot provide any information on specific bank accounts.

Use of Crypto Mixers
An investigation by local media suggests that after successfully siphoning investors’ funds, the Cajee brothers fled to the United Kingdom. These findings are also corroborated by another investigation by Hanekom Attorneys, a law firm that has been retained by victims of the Africrypt fraud. In addition to these findings, the law firm’s investigations further reveal that Africrypt directors had used mixers in an attempt to obfuscate the flow of the funds.

While the case has now been reported to the Hawks (South Africa’s elite police unit), the founder of the law firm, Darren Hanekom, is quoted in the report as suggesting Africrypt’s accounts with FNB have already been “drained” and that “the entirety of investors’ funds” may have been subjected to the mixing service.

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