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Don’t Close Crypto Exchange Accounts Says the SARB

Don't Close Crypto Exchange Accounts Says the SARB
While South Africa's big banks have viewed crypto exchanges as high risk and moved to close accounts the SARB now urges the banks to change their tune.

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The South African Reserve Bank’s Prudential Authority’s has issues a guidance notice calling on banks not to close the accounts of crypto exchanges.

Several of SA’s biggest banks have moved to close accounts as they deem crypto currencies and exchanges to be high risk.

“Risk assessment does not necessarily imply that institutions should seek to avoid risk entirely (also referred to as de-risking), for example, through wholesale termination of client relationships which may include CASPs,”

“De-risking may pose a threat to financial integrity in general and to the application of a risk-based approach, specifically, as it could potentially create opacity in the affected persons’ or entities’ financial conduct, and it eliminates the possibility to treat ML/TF/PF risks.”

Prudential Authority’s

Crypto exchanges have welcomed the PA’s guidance note saying it was a positive move for the crypto industry.

For a more in-depth article visit ITWeb and read, ‘SARB urges banks not to close crypto exchange accounts’.

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