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The South African Reserve Bank will begin testing cryptocurrency regulation

A new report has illustrated that the South African Reserve Bank intends to trial new cryptocurrency regulations in a sandbox business.

A new report has illustrated that the South African Reserve Bank intends to trial new cryptocurrency regulations in a sandbox business.

South Africa may soon come up to speed with regulating cryptocurrencies such as Bitcoin, as a new report by BusinessTech illustrates that the South African Reserve Bank will begin trialling new regulations in a sandbox business environment.

BusinessTech cites that Lorien Gamaroff – the CEO of a blockchain-based solutions provider named Bankymoon – offered that his company is presently in talks with the Reserve Bank and has been selected as a sandbox business within which to trial new regulations.

Read: Crypto markets slide by $13 billion in the wake of Bitcoin uncertainty

According to BusinessTech, Gamaroff cited that the “…Reserve Bank is very hesitant to give a stamp of approval on anything that comes out. The sandbox will only be Bitcoin-focused during this initial phase, but is focused on applying broad regulations to all cryptocurrencies.”

Gamaroff reportedly continued to state that “I think the regulation will move things along and make people on the street comfortable with Bitcoin. With these new regulations, these everyday people can now trust that Bitcoin is not just for hackers and criminals.”

It was first reported in August of 2016 that the Reserve Bank was prepared to research the feasibility of the blockchain and cryptocurrencies in South Africa, and offered that it would be open to developing a national digital currency.

At a cybersecurity conference held in Johannesburg, Governor Lesetja Kganyago reportedly told attendees that “As a central bank, we are open to innovations despite the different opinions of regulators on matters such as cryptocurrencies. We are willing to consider the merits and risks of blockchain technology and other distributed ledgers.”

The news comes after some of South Africa’s major private banks – including ABSA – held tests to evaluate the feasibility of using a private version of the Ethereum blockchain to facilitate financial transactions.

Gamaroff reportedly revealed that he had been in regular contact with the Reserve Bank, and had been part of an investigation to determine the feasibility of alternative currencies in South Africa – mentioning that the sandbox partnership could determine the potential future regulation of cryptocurrencies in the country.

Read: Is Bitcoin the future of currency, or just a commodity bubble?

What are your thoughts? Should the South African Reserve Bank seek to regulate cryptocurrencies? Be sure to let us know your opinion in the comments below!

Follow Bryan Smith on Twitter: @bryansmithSA