South Africa’s major problem with regard to crypto is the high increase in the number of crypto frauds and scams. While addressing the issue at hand, the country’s regulators are trying to issue crypto regulations as soon as possible for the prevention of crypto-related crimes. The regulator wishes to complete the objective of introducing crypto regulation on a fast-scale basis and a deadline has been provided to the concerned for drafting the regulations within a period of 3 to 6 months.
South Africa has come to believe that there are potentially more risks attached to crypto than any other business. In the perspective of South Africa, the concern is true because there have been many crypto frauds recently in the country. While the country was still fighting against the biggest crypto scam of MTI, yet there was another scam caused by Cajee Brothers. Both scams are currently going through a court trial and there are marginal chances that the victims will be compensated.
MTI’s culprits looted crypto funds of the public and then ran away. Literally, there is nothing to be recovered from anyone and the Court had to resort to liquidating MTI’s assets. Meanwhile, Cajee Brothers have been accused of plundering public money they had taken through their crypto trading platforms. Cajee Brothers are claiming that it was a hack that took the money, while the prosecution suggests that Cajee Brothers are the looters.
In these circumstances, the South African Government wants to rush up things and ensure that the crypto law is drafted as quickly as possible.
Prudential Authority’s CEO, Kuben Naidoo, had said that they are trying to deduce the law as soon as possible. He said that they are trying to protect crypto by defining it as an item of “financial product”. Once the definition is approved and finalized then the task of developing a regulatory structure would become easy. Without defining the crypto, the law would serve no purpose at all, advised Naidoo.
However, within the Government quarters, it seems that the patience is ending. In fact, after the incident of Africrypto, the Government is of the view that the law should be provided for immediately. Africrypt is currently another mega-scale alleged crypto scam that has been committed in South Africa.
Africrypto was a crypto startup founded by two brothers who thereafter became the directors of the company. Both of them were running the startup and recently claimed that a scam had occurred on their trading platform. They also alleged that the scammers stole the funds lying into Africrypt’s trading accounts. However, when the media questioned whether they had registered an FIR before the police, they said no. Even after the passing of so many days after the alleged scam, yet there is no FIR from the Cajee Brothers’ side. This has also given rise to the accusations of fraud instead of a scam.