Cryptocurrencies, or crypto assets, have ushered widespread attention across the globe. They are steadily becoming commonplace in investment portfolios, all the while possessing extensive global transactional capabilities. Due to the decentralised nature of blockchain technology, the lines between traditional nomenclatures of money and assets have come into question.
Blockchain technology grants cryptocurrencies the ability to conduct transactions without the need of an intermediary (peer-to-peer transactions), rendering it a medium-of-exchange (not legal tender necessarily). On the other hand, cryptocurrencies are commonly used as an investment instrument, to achieve capital gains (buy & sell back into fiat), or alternatively, used as a long-term hedge against inflation (buy & don’t sell, also known as “hodling”). The latter approach adopts the view of long term crypto strengthening against a weakening fiat currency.
The widespread adoption of this new hybrid asset and its various applications has presented a global challenge to regulators in the formulation of legislative policy. The following report provides an overview of how regulators are responding to this challenge across the globe, and how this may impact the sector going forward.
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The EC10 Bundle carries a very high-risk profile. The Crypto Asset market remains unregulated in South Africa, and Crypto Assets are very volatile, prone to hacks and thefts, and hype cycles which can see prices drop more than 95%. Please never invest more than you are willing to lose, do your own research, read our terms and conditions and risk disclaimers, and act sensibly with your money.
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