The cryptocurrency scam problem is getting bigger in South Africa and in an attempt to curb that the government is looking for a way to regulate the cryptocurrency industry in the country. Since Bitcoin and various other altcoins are making their way from the underground to the mainstream and more and more serious companies are investing in them, various financial regulators all over the world are finally taking notice of these developments and focusing on the increasing number of crypto service providers, which so far have worked without any regulation. South Africa had a particularly bitter experience in that regard, unfortunately. Late in 2020 a massive scandal erupted when the largest Ponzi scheme ever run in the country fell apart. Said scheme, as you can imagine, was presumably traded with Bitcoin. That scandal and others like it forced the local financial regulators to come up with tighter and more specific rules aimed at the cryptocurrency industry. The South Africa Intergovernmental Fintech Working Group (IFWG) issued a statement: “Crypto assets will be brought into the South African regulatory purview in a phased and structured manner” and added “it is, however, reiterated that with or without regulation, crypto assets remain inherently risky and volatile.” IFWG made 25 different recommendation regarding how to regulate the crypto market and those recommendations will be reviewed the SA financial regulator - the Financial Sector Conduct Authority (FSCA). In January 2021, the daily volume of cryptocurrency assets being traded in South Africa exceeded 147 million dollars and this may the SA Reserve Bank announced its for its own digital currency for general use. This is probably better than banning cryptos altogether, because bans just drive the scammers further underground and the problem becomes that much harder to control.
I don't know about that. Half the problem with scamming is the users that allow themselves to be scammed by their own stupidity. If more awareness was brought into light then more people wouldn't be scammed. There is really no need for government to step in and regulate everything like they are the heroes that are going to save everyone by taxing the crap out of everything. If people would just do more research before buying an asset that they have no clue about, then maybe less people would be scammed.
Africa can’t even figure out how to get their own people water because they can’t get out of the way of their own crime and corruption How will they even come close to attempting to do this?
I think it's more ignorance than stupidity. With regulation comes more access to education and more talk in the media about sources of education. When it's banned no one knows anything about anything and scammers take advantage of that.