South African Reserve Bank Encourages Friendly Behavior with Crypto

The Prudential Authority of the Reserve Bank of South Africa sent out guidelines in effort to prevent illicit activities to its subsidiaries, which included encouragement not to cut off all ties with cryptocurrency. It suggested that such an act could cause greater risk in the long run. The official notice was signed by the Prudential Authority CEO, Fundi Tshazibana. In the past certain South African banks cut ties with what is called in the document, "Crypto Asset Service Providers" (CASP), due to unclear regulations or a high risk factor. However the notice highlights that risk assessment doesn’t mean dropping crypto entirely: "Risk assessment does not necessarily imply that institutions should seek to avoid risk entirely, for example, through wholesale termination of client relationships which may include CASPs."