Bitcoin exchange in south africa
Grobler, who hails from South Africa, started trading bitcoins before he and his partners came up with the idea of starting an exchange. The number of people without bank accounts, known as the unbanked population, is high in many African countries and people who are trying to transfer money to their loved ones face all sorts of obstacles.
These can range from high transaction fees to uncompetitive interest rates. The decision to start the African exchange stems from his ties to the continent.
While bitcoin has taken off in Africa, regulators are cautious about "crypto-currencies" such as bitcoin being used for money laundering and terrorist financing. South Africa's Central Bank issued a position paper in that said that crypto-currencies were not legal tender. The bank acknowledged that crypto-currencies may "reduce the costs associated with the conventional banking system as these are perceived to be expensive".
In bitcoin exchange in south africa, the Kenyan Central Bank issued a circular advising banks that bitcoins and other digital currencies were not legal tender and no protection exists in the event that an exchange went out of business. The Kenyan Central Bank cautioned banks against dealing with cryptocurrencies or exchanges that trade in them.
But last Augustthe governor of South Africa's Central Bank said the bank was open to innovations despite the opinions of other regulators on crypto-currencies. He points out a would-be money launderer would have to pay a fee to deposit a large sum of money on an exchange. Then he would pay another commission to buy the bitcoin.
Since there is no set price on an exchange for bitcoin, sellers of bitcoin would immediately put their prices up if they see the size of the order.
Given there is little mining of bitcoin in Africa, the cost of moving funds from Europe and the United States to Africa could range from 5 to 30 percent, he said. Everybody jumps on everything being anonymous but if you look at the economics of it…. For me to launder a million rand, I'm effectively losing 30 to 40 percent.
To determine if a transaction is fraudulent, Grobler says compliance officers bitcoin exchange in south africa learn about cryptocurrencies bitcoin exchange in south africa how they work. This means knowing how the blockchain technology underlying it works and the various ways the currency is used, then deciding if there is criminal intent.
The way you would interact with Ethereum another digital currency is completely different from how you would interact with bitcoin. One of the most bitcoin exchange in south africa things to know is the value of the transaction. You bitcoin exchange in south africa all the variables then you need someone who understands all the various cryptocurrencies to identify all the ways you could get scammed.
Published Jul Gareth Grobler was working on a project for Investec Bank in London in when somebody told him about bitcoin. At first he was sceptical but then he saw the potential of the new digital currency. In my mind, it had to be a Ponzi scheme. After a week, I realized the potential it had and I pretty much threw everything I had into it.