Financial technology, often referred to as FinTech, is the marriage between financial and technology services. The FinTech offering seeks to provide innovative alternatives to traditional methods in the delivery of financial services.
The different categories that sit within the ambit of the broader FinTech offering include: lending, payments, wealth management and personal finance, digital currencies
In mid-January 2019, the SARB published its Consultation Paper on Policy Proposals for Crypto Assets, amid a growing interest, investment and participation in crypto assets by financial institutions and individuals and an estimated market capitalisation of about US$200 billion for crypto assets globally. Crypto assets are digital representations or tokens that are accessed, verified,
With Bitcoin’s popularity and value growing significantly, many wonder how cryptocurrencies will be treated by the South African Revenue Service (SARS) and other regulators.
Bitcoin is one of hundreds of different cryptocurrencies in existence. Cryptocurrencies are unregulated, decentralised digital currencies which can be bought, sold and traded for fiat money or goods and services.
Because of the anonymity associated with Bitcoin and many other cryptocurrencies and their role in illicit transactions on the Dark Net (a hidden part of the internet that is not accessible through normal browsers and search engines), public perception is often suspicious or at least cautious. However, the use of Bitcoin and other cryptocurrencies is
Many creditors require some form of security to be given by their debtors to ensure the payment of a debt. The creditor acquires a right over property of the debtor which may be exercised if the debt is not paid. One of the most common examples is a mortgage bond over immovable property in favour
South African courts have yet to deal with a case involving Bitcoin or other cryptocurrencies. But the fact that cryptocurrencies remain largely unregulated in most jurisdictions does not place cryptocurrency disputes beyond the reach of the courts.
Globally, most litigation has related to insolvency, fraud and breach of contract.
Cryptocurrencies are unregulated in most jurisdictions and their legal nature has not yet been determined by legislation or case law.
Virtual or digital currencies display certain key features of money:
As the use of cryptocurrencies like Bitcoin increases, so will the demand for insurance to protect against the risks associated with them. A number of global Bitcoin storage providers offer their customers insurance for storage vault failure. At least one US insurance group offers Bitcoin holdings insurance as an endorsement to existing crime policies.
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