South African crypto firms are threatening to move abroad if local lawmakers are unable to provide regulatory clarity to its domestic digital asset industry.

Speaking to Bloomberg, Sean Sanders, the CEO of local crypto investment platform Revix — who plan to relocate their head office to the United Kingdom, described the South African regime as being "incredibly boring" in clarifying regulatory guidelines for the crypto industry.

"That leads to businesses looking internationally. In an unregulated environment, a customer arrives at our platform with skepticism, and rightfully then," he said, adding:

South Africa seems to go in the opposite direction of some of the more than developed marketplace pioneers and innovators in this space. For regulators to apply hundred-twelvemonth-quondam securities regulations to the novel cryptocurrency nugget grade seems lazy."

Revix is likewise planning to launch an additional role in Germany.

South African crypto firms are claiming the country's fiscal institutions are unwilling to provide cyberbanking services to them, with Marius Reitz, the African full general manager of global crypto exchange Luno, alert the credible banking embargo will stifle local adoption:

"This makes it very difficult for customers to buy Bitcoin with their local fiat currency," he said.

South African adoption has also been hampered by a recent prevalence of scammers leveraging crypto to lure their victims. Last calendar month, South Africa'south Financial Sector Conduct Authority, or FSCA, reported the number of crypto scams is on the rise amid the electric current bull marketplace. In a February. iv communique, the FSCA warned investors:

"Practice not exist pressured to get with the flow and do non exist agape of being left out of the next big matter.'"

In December 2020, Cointelegraph reported that alleged Due south African Ponzi scheme, Mirror Trading International, had been placed into provisional liquidation by regulators afterwards receiving more than than 23,000 Bitcoin from investors.

An investigation by the FSCA revealed the house didn't keep accounting records or maintain user databases. Investors were unable to withdraw funds, with the FSCA speculating Mirror'south CEO, Johann Steynberg, may accept fled to Brazil.