The financial services group called Sygnia will be launching a cryptocurrency exchange in the third quarter of 2018. The information has been released by Magda Wierzycka, CEO of Sygnia, and has been reported by local news sources.
Sygnia Plans to Launch a Crypto Exchange
The cryptocurrency industry allowed several businesses to start new investments which have been very profitable. But cryptocurrency exchanges have provided extraordinary returns to their funders. This may be one of the reasons why Sygnia is moving to that industry.
The company explained:
“We aim to launch SygniaCoin, a cryptocurrency exchange, in the third quarter of 2018. The cryptocurrency market is evolving at a rapid pace internationally and domestically, and is attracting both domestic and international flows.”
Sygnia is a fintech-focused company that is very well positioned so as to become the first major financial services institution that would embrace cryptocurrencies and offers investors a secure trading platform. As cryptocurrencies expanded during this year, institutional investors have been searching different platforms to start placing their money in virtual currencies. The main problem is that most of the exchanges are not regulated or do not offer the necessary tools for wealthy investors to start working on these platforms.
At the same time, the company headquartered in Cape Town explained that regulations around cryptocurrencies are likely to increase. “The 2018/2019 budget defined cryptocurrencies as ‘digital assets that may be used as a medium of exchange.’ The South African Revenue Service has already indicated that trading and investing in Cryptocurrencies are subject to tax. We expect further regulatory frameworks to follow.”
This is one of the reasons why the company has decided to base its policies, protocols, and processes on existing regulatory framework which are applicable to crypto exchanges registered in New York, United States. That would allow the exchange to gain more trust among investors that are searching for platforms that have clear operational rules. Additionally, and according to Business Tech South Africa, Sygnia started to implement infrastructure upgrades to Sygnia Securities and expanding its range of activities to take advantage of stock lending, market-making and third-party execution opportunities.
Mrs. Wierzycka explained:
“We believe that South African asset managers have become too complacent about the corporate activities of JSE-listed companies. We intend to invest in companies that provide opportunities to unlock significant value by positive engagement with management.”
Some time ago, we wrote at BitcoinHub that the South African Revenue Service (SARS), released its stance on taxing cryptocurrencies. According to the agency, normal income tax rules will aply to virtual currencies in general. The information has been released in a statement on April the 6th, in which the SARS explains how it will be taxing cryptocurrency investors.
With an increased interest of the population for virtual currencies, the country has been moving towards new regulations and implementations of blockchain technology. Several companies are working in different crypto-related projects; and even the South African Reserve Bank (SARB) has decided to work with Blockchain technology