South Africa is pushing for the classification of digital assets as onshore assets to stimulate growth in the sector. The lack of classification limits investment opportunities for South Africans, particularly for institutional investors. Currently, digital assets exist in a regulatory limbo, resulting in high retail investor activity amidst significant institutional hesitance due to potential legal repercussions.
In recent years, South Africa has intensified its efforts to establish regulations and licensing for digital assets. Nonetheless, a significant point overlooked by regulators is the classification of these assets, which local exchanges contend is essential for stimulating growth within this emerging sector. Currently, digital assets remain in a state of regulatory uncertainty, lacking classification as either onshore or offshore assets.
In conclusion, South Africa’s existing regulatory framework poses challenges for digital asset investments. Classifying these assets could remove uncertainties and encourage growth, particularly for institutional investment. The shift could align digital assets with recognized investment categories, thereby enhancing South Africa’s position in the global market for digital assets.
Original Source: coingeek.com
