Article • about 1 year ago
Crypto Industry in South Africa Faces Challenges as US Firms Block Users Amidst Regulatory Concerns
Summary
- US crypto exchange Kraken has stopped accepting deposits from users in South Africa due to its banking partner's decision to place the country on its AML blacklist.
- South Africa was added to the FATF "grey list," indicating increased monitoring and highlighting shortcomings in implementing technical requirements for combating money laundering in the crypto industry.
- The regulatory and technical sanctions have had a negative impact on the crypto arbitrage business in the country, as assets like Bitcoin and USDC trade at a premium on South African exchanges.
- Circle, the issuer of USDC, had previously halted fiat payments from users in South Africa in anticipation of greater financial sanctions on the country.
- The decision by Kraken has led to a reduction in the trading volume of arbitrage trades in the country and a spike in the premium for these assets trading higher than their actual price.
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