The Financial Intelligence Centre (FIC), the Financial Sector Conduct Authority (FSCA), the National Treasury (NT), the South African Revenue Service (SARS) and the South African Reserve Bank (SARB) has submitted the very first in-depth consultation paper calling for public participation before policy makers draft the first crypto regulation of its kind in South Africa.
Like most countries, cryptocurrency in Africa’s most developed economy remains unregulated. However, the country’s tax collector not only cautions investors against the risk of trading or investing in risky assets but went imposes levies on crypto capital gains.
All the same, the global nature of these assets makes it very difficult for regulators to enforce fitting policies without obstructing innovation. It is for this reason why public participation is important. As they highlight what local investors are set to reap from favorable policy, a standout will be the way crypto remains a censorship resistant asset whose prices remain immune to localized political or economic events.
Ripple, as a network that is focused on creating fitting solutions for banks and financial institutions, will immensely benefit from favorable regulations not only in SA but if others follow suit. From reports, James Preston, a project lead who has been tracking crypto development in South Africa had this to say:
“Having carefully read through SARB’s consulting paper–on regulating crypto assets in South Africa, it’s clear to me that they want to be as progressive as possible without hindering and infringing on the security of South Africa’s central banks.”
XRP/USD Price Analysis
Bears appear to be clawing back yesterday’s gains but bulls have an upper hand. Like we have been emphasizing, XRP/USD trajectory is upwards and after deep corrections from Sep 2018 highs, it’s only natural for prices to snap back and realign with our anchor bar. But, considering the lax around momentum build up, we are neutral but net bullish. The only time for trade execution is when XRP rally drive prices above 34 cents—triggering risk off buys and 40 cents.
Trend and Candlestick Arrangements: Positive, Bullish
As aforementioned, the general trend is bullish. But in the short-term, sellers are in charge, suppressing prices below 34 cents minor resistance. Nonetheless, as long as XRP trends above 30 cents, there is a real possibility that recent accumulation will be the impetus for sharp gains above 40 cents. After all, we are trading within a bullish breakout pattern. With immediate supports at the 78.6 percent Fibonacci retracement level of Dec 2018 high low or at 30 cents, we are confident of trend resumptions.
Volumes: Thin, bearish
Candlesticks points to bulls but prices are consolidating with participation averaging 18 million by yesterday’s close. This is nothing relative to Jan 10 conspicuous bar recording 83 million. Ideally, huge volumes–above 18 million and even 83 million, should propel the main bar triggering price reversals from 30 cents.