The issuance of CASP licenses by the FSCA and the implementation of the Travel Rule by the FIC are expected to attract more traditional investment funds into the crypto market, offering investor protection under the FAIS Act. This regulatory progress, along with blockchain technologys potential and improving liquidity, positions the crypto market for significant growth despite its inherent volatility
The Financial Sector Conduct Authoritys licensing of crypto asset service providers in South Africa is expected to shift investments from traditional assets to the crypto market, offering investor protection under the FAIS Act. Additionally, new regulations from the Financial Intelligence Centre will require detailed identification and verification of cryptocurrency transactions, aiming to enhance transparency and help South Africa address issues that led to its grey-listing by the Financial Action Task Force.
Market inefficiencies in the cryptocurrency market create opportunities for arbitrage, but high volatility and technical risks pose challenges. Despite these risks, the evolving regulatory landscape and the potential for significant gains continue to attract investors to crypto arbitrage, with South African arbitrageurs needing to comply with local regulations and disclose profits for taxation.