- Title
- A critical analysis of South African anti-money laundering legislation regarding cryptocurrency
- Creator
- Bowden, Susan
- Subject
- Money laundering -- South Africa
- Subject
- Money -- Law and legislation -- South Africa Electronic funds transfers Money -- Technological innovations
- Date Issued
- 2019
- Date
- 2019
- Type
- Thesis
- Type
- Masters
- Type
- LLM
- Identifier
- http://hdl.handle.net/10948/42107
- Identifier
- vital:36626
- Description
- Cryptocurrencies are decentralised virtual currencies, using blockchain technology to process peer-to-peer electronic payments. In 2009, the first successful cryptocurrency, Bitcoin, was established. As a result of the Internet, cryptocurrencies had soon made their way into South Africa. As such, cryptocurrencies are currently not included under the definition of a legal tender and therefore remain unregulated by the legal framework. This issue is examined within this research project. The objectives were to understand the concepts of cryptocurrency, the relevance in the financial sector, the associated risks and to establish whether regulatory interference is necessary for the operation of cryptocurrency. The legal and regulatory framework of cryptocurrencies within Canada, the United States of America and the European Union were compared to that of South Africa. The research explained that cryptocurrencies are decentralised convertible currencies which are secured by cryptography. It highlighted the risks associated with cryptocurrencies, some of which are detrimental due to the wide use of cryptocurrencies. One of the risks included using cryptocurrencies to launder money. In order to mitigate these risks, jurisdictions such as Canada, the United States of America and the European Union have begun to regulate cryptocurrencies by establishing a legal framework for its operation. However, no such legal framework existed in South Africa for the regulation of cryptocurrencies. As a result, the South African Reserve Bank and National Treasury released position papers, which warn consumers of the associated risks. Therefore, the conclusion was made that regulatory intervention is necessary in South Africa. Following this, the recommendation was made to integrate cryptocurrencies into relevant existing legislation. It was recommended that regulation is the most effective method of combatting money laundering using cryptocurrencies.
- Format
- ix, 71 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Law
- Language
- English
- Rights
- Nelson Mandela University
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