South Africa’s parameters for cryptocurrency regulation include a trial for cross-border remittances to Ghana through a blockchain wallet.

The regulatory parameters for cryptocurrency published by South Africa last week mandates the South African Reserve Bank to closely monitor crypto assets and service providers for “cross-border financial flows”.

This will require amendments to its exchange control regulations to allow new provisions to be factored in to green-light licensed entities in cryptocurrency “to source or buy crypto assets offshore for the purpose of selling” on the local market.

Last week the Intergovernmental Fintech Working Group (IFWG) - comprising South Africa’s National Treasury, the Financial Intelligence Centre, the Financial Sector Conduct Authority, the National Credit Regulator, the South African Reserve Bank, the South African Revenue Service, and the Competition Commission - resolved that “crypto assets cannot remain outside of the South African regulatory purview” while also projecting that “crypto asset-related activities are likely to increase” in South Africa.

Subsequent to that has been the release of the first cohort of the South African regulatory sandbox for cryptocurrency which includes the first Bitcoin SV (BSV) Fintech company to trial cross-border cryptocurrency remittances to Ghana.

“Centbee’s cross-border remittance app, Minit Money, was selected to participate to test the regulatory treatment of cryptocurrency assets for low-value cross-border remittances between South Africa and Ghana,” the company said in a statement on Tuesday.

The regulatory sandbox provides market innovators the opportunity to test new products and services under regulatory supervision.

According to Angus Brown, joint CEO for Centbee, the company will “work closely with financial sector regulators in South Africa” to trial remittance services using its mobile application under their supervision.

The Minit Money app “enables foreigners living in South Africa to send money back to their homes in Africa” at low costs.

The Bitcoin Association said this month that remittance services involving cryptocurrencies were crucial for countries like South Africa that could benefit from bitcoin wallets.

The organisation stated: “South Africa is home to a significant population of migrant workers, many of whom send money back to family across Africa – making it important that the role these technologies play in the lives of vast swathes of the population are fully understood by regulators.”