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South African Reserve Bank plans to implement new rules to stop cryptos help evade tax controls. While currency controls is a broad term, the statement is more pertinent to foreign exchange control.

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Rules To Be Applicable from Q1 2020

South African Reserve Bank is all set to clamp down on crypto exchanges. The former will be doing analysis of wallet transactions and also reporting on user’s activities. This in turn has raised several red flags and is also a threat to innovation in the industry.

The rules will be applicable from the first quarter of the next year. The consultations for the same began in 2014. The reason for applying the same is that South Africa has limitations on how much money can be transferred outside the country.

The implications of the clamp down in the long run are far reaching and alarming. Not only will the conservative regulations hinder innovation but also lead to crippling of the economy.

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Will the move Hinder the Economy?

Cryptocurrency market with a market cap of $210 Billion is driving significant economic growth in countries. Not only this, blockchain and crypto asset companies are attracting worldwide attention.

Considering the case of South Africa, the limit without declaration is R1 Million. Also, special application to SARS (South African Revenue Service) citizens can send up to a further R10 million out of the country for foreign investment purposes. Subsequently, this reserves a limit of R11 Million that is allowed to send across the border. This implies that high net worth individuals looking to protect wealth against Rand’s devaluation are looking for alternative methods to send money out of South Africa.

A method of doing this is with the use of cryptocurrencies as the borderless nature of Bitcoin and other cryptos allows users to send them anywhere in the world. This can also be the reason why the price of Bitcoin and other digital assets in relation to international prices has been low.

How will the ban be taken by crypto enthusiasts? Let us know, what you think in the comments below!

Summary

Crypto Update: African Reserve Bank Plans to Curb Crypto Adoption

Article Name

Crypto Update: African Reserve Bank Plans to Curb Crypto Adoption

Description

South African Reserve Bank plans to implement new rules to stop cryptos help evade tax controls. While currency controls is a broad term, the statement is more pertinent to foreign exchange control.

Author

Supriya Saxena

Publisher Name

Coingape

Publisher Logo

cryptocoach

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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Supriya Saxena , 2019-11-30 12:29:03 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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