The financial company based in Cape Town, Sygnia, is planning to open a cryptocurrency exchange later this year. The reason behind this decision is that there has been an increased interest in cryptocurrencies all over the country during the last months.
SygniaCoin Cryptocurrency Exchange
The name of the new exchange is expected to be SygniaCoin and it will allow important investors in South Africa to access the crypto market. The platform will also offer a secure trading and execution platform, an innovative custody, and integration with other products and services.
The information has been released by Magda Wierzycka, CEO of Sygnia Group. She explained that the intention is to launch the exchange during the third quarter of 2018, being the first major financial services institution to embrace virtual currencies and offer its customers a well-designed service.
At the same time, with regulations in mind, the exchange will follow the existing regulatory framework applicable to crypto exchanges that are registered in the state of New York, in the United States.
Mrs. Wierzycka explained:
“The 2018/2019 budget defined cryptocurrencies as ‘digital assets that may be used as a medium of exchange.’ The South African Revenue Service (SARS) has already indicated that trading and investing in cryptocurrencies are subject to tax. We expect further regulatory frameworks to follow.”
South Africa has been an important hub for virtual currencies and blockchain technology. The interest in these assets is one of the highest in the world, according to google trends, even more than in Japan or the United States. The South African Reserve Bank – also known as SARB – is also working with blockchain technology and investing in the research of cryptocurrencies.
Some days ago, the first Bitcoin ATM has been installed in the South African city of Johannesburg due to the increased demand for virtual currencies in the society. At the moment the SARB has decided to define cryptocurrencies as ‘cyber-tokens’ because they do not meet the requirements to be classified as money.