New Cryptocurrency Exchange to launch In South Africa By Next Quarter

A South African investment firm Sygnia Asset Management has announced today that it has concluded plans to open a cryptocurrency exchange later this year.

This latest development was reported by a regional business news outlet BusinessTech, which stated that Sygnia Asset Management which has roughly $14 billion in asset under management will launch a cryptocurrency exchanged, to be named SygniaCoin, and is set to be launched in the next quarter.

The CEO of the investment firm Magda Wierzycka while talking about this latest development stated that “We aim to launch SygniaCoin, a cryptocurrency exchange, in the third quarter of 2018. The cryptocurrency market is evolving at a rapid pace internationally and domestically, and is attracting both domestic and international flows.”

She added that “With its fintech focus, Sygnia is well-positioned to become the first major financial services institution to embrace cryptocurrencies and to offer investors a secure trading and execution platform backed by an international infrastructure, well-designed custody, and integration with standard savings products.”

She also stated that the exchange will use the BitLicense framework that was adopted by New York State’s Department of Financial Services (NYDFS) when designing its operational and security policies.

The BitLicense is currently the most rigorous regulatory regimes governing cryptocurrency exchanges. She stated that using the BitLicense framework will make it easier for them to serve institutional investors.

Asides cryptocurrency trading, the exchange platform Sygnia plans to also give traders the option of holding cryptocurrencies in their Sygnia accounts alongside some of their other investments. The company revealed that they will open a fund that will be tasked with investing in a wide range of digital currencies on behalf of their investors.

It is worthy to note that South Africa’s central bank has yet to outline a clear policy on cryptocurrencies, which it recently termed as “cyber-tokens.” Wierzycka, however, believes that the government will work on more robust regulations and guidelines in the future.

South Africa has been one of the countries that have witnessed an increased interest in cryptocurrencies over the past few months despite the cryptocurrency market on the downtrend since the start of the year. A survey recently carried out revealed that 47% of the people in the country who haven’t yet invested in cryptos plan to do that in the near future.

Recent posts