South African Pension Funds To Be Banned From Crypto Investment

South African Pension Funds Will Be Banned From Crypto Investment, Draft Rules State. “A fund cannot directly or indirectly invest in crypto assets”

South African pension funds will be prohibited from investing in cryptocurrencies under the new draft rules.

This will replace existing legislation that allows portfolio managers to invest up to 2.5% of funds in crypto as part of an umbrella “other assets” category.

The South African government defines a crypto asset as “any digital representation of value not issued by a central bank, but which can be traded, transferred or stored electronically by natural and legal persons for the purposes of payment, investment and other forms of benefit”. ; It applies cryptographic techniques and uses distributed ledger technology.”

Such a broad definition points to the ban extending to non-tradable tokens (NFTs) and similar tradable digital assets.

Financial regulators in South Africa have noted in recent months that there will be an acceleration in crypto regulation in response to retail investors being scammed by fraudulent investment firms.

Source: coindesk.com

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.