Despite the severe economic and political issues on top of strict crypto regulations in South Africa, Riccardo Spagni, a member of the Monero Core Team and co-founder of decentralized platform Tari Labs says the country is still an excellent breeding ground for motivated entrepreneurs, reports Mybroadband on August 30, 2019.
Local Businesses can Benefit
Per the report, Riccardo Spagni believes South Africa is a green pasture for motivated entrepreneurs despite the economic and political setbacks in the country.
Reportedly, Spagni has been a part of the Monero cryptocurrency project since its infancy stage, and he has launched other crypto-related businesses in South Africa, successfully.
When asked if he would consider leaving the region, the Monero lead maintainer answered in the negative stating that he was born and bred in South Africa. As such, he has grown fond of the region, and the only reason why he would consider relocating is if it is fundamentally necessary.
There may be serious problems in the locality unlike developed countries that have sorted out their water, electricity, and police force; nonetheless, there is a scope and potential for South Africa, he said.
South Africa’s Regulatory Concerns
Spagni also remarked that the regulatory concerns in South Africa, especially in the aspect of cryptocurrency, is a deterrent for local businesses looking to start an international platform in the region.
However, individuals who are highly motivated will still look past these hurdles to continually create their opportunities.
“Exchange control really drives people away from South Africa from a business perspective. It makes it really difficult to do business with companies outside of South Africa,” he said.
Another instance the entrepreneur cited, is the case of the South African Reserve Bank (SARB) who has set a credit card limit for transactions.
Explaining how the SARB’s limitation is a setback, Spagni said cryptocurrency companies majorly deal with several web pages where lots of transactions are carried out.
As a result, the SARB’s regulation places a limit on the transactions these businesses can carry out daily.
SARB, on the other hand, had published a consultation paper in January 2019 stating that priority has to be given to regulatory action on cryptocurrencies to protect consumers and investors.
On January 4, 2019, BTCManager informed that the South African government has created a team of specialists who will investigate crypto assets and blockchain technology to formulate regulatory guidelines for the industry.