Cyril Ramaphosa, the president of the African National Congress (ANC) party in South Africa, was re-elected on Friday and will serve as the head of the nation’s inaugural multi-party coalition government.
In this election, the ANC was unable to secure a majority, as it only secured 159 seats, falling short of the 200 seats necessary for a majority. They announced the formation of a fragile coalition government, which they termed the government of national unity, after days of back-and-forth deliberation. The coalition includes the Inkatha Freedom Party, the lesser Patriotic Alliance, and the Democratic Alliance, their largest opposition party.
Since the conclusion of apartheid in 1994, the ANC has maintained control over the nation for three decades. The ANC will have an additional five years to govern the country following this election, despite the fact that it will not have the same level of support as it did in the past. It had 230 members in the previous parliament.
There is no anticipated substantial influence on the cryptocurrency industry in South Africa as a consequence of the election results. The Financial Sector Conduct Authority, the country’s foremost regulator, has recently implemented a crypto licensing regime, making it one of the first African nations to do so. Luno, Zignaly, and VALR were among the first crypto companies to receive a license in April, as the country has recently begun licensing digital asset firms. In order to regulate digital assets as financial products, the nation incorporated crypto providers into its Financial Advisory and Intermediary Services Act in 2022.
The Intergovernmental Fintech Working Group of the United States is also anticipated to investigate the implications of tokenization, contemplate a policy and regulatory response this year, and evaluate use cases for stablecoins.
In April, South Africa initiated consultations on a directive that would incorporate cryptocurrency into the nation’s travel regulations. Upon their publication in the gazette, the regulations will become effective. The directive mandates that virtual asset service providers disseminate information regarding purses and passports during the transfer process.
Several nations worldwide are implementing the Financial Action Task Force’s travel rule, which mandates the exchange of information regarding cryptocurrency transactions and the prevention of money laundering.
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