Johannesburg Inventory Change Rejects Bitcoin ETF Software, Cites Lack of Regulatory Framework – Finance Bitcoin Information

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South Africa’s Johannesburg Inventory Change (JSE) has rejected a request by the asset administration agency, Sygnia, to checklist a brand new bitcoin exchange-traded fund (ETF). In justifying its rejection of the most recent proposal by Sygnia, the JSE cites the “lack of a regulatory framework for cryptocurrencies as the rationale.”

Surprising Rejection

In the meantime, a report means that whereas Sygnia was not anticipating “an instantaneous acceptance of the bitcoin ETF”, firm executives nonetheless didn’t anticipate such “a fast rejection.” As a substitute, in her response to the JSE’s choice, Sygnia founder and govt chairman Magda Wierzycka stated:

We anticipated the JSE to place in it ‘file 13’ and if and once they had been prepared that Sygnia could be the primary within the queue.

As well as, Wierzycka says the bitcoin ETF “would have attracted consideration, and in flip cash, to the JSE.” Within the meantime, the identical report reveals that that is the second time the JSE has rejected the same software by Sygnia. In 2017, Sygnia unsuccessfully tried to checklist the world’s first cryptocurrency ETF on the JSE. On the time, a former govt with the change, John Burke, advised the JSE “was not able to approve cryptocurrency listings.”

Bitcoin’s Staying Energy

In a distinct report, Wierzycka is quoted expressing her perception in bitcoin’s endurance. She additionally discusses how the crypto asset’s worth has been manipulated by “one very highly effective and influential particular person.” She stated:

The volatility we now have seen is a—clearly surprising—operate of what I might name market manipulation by Elon Musk. If that occurs to a listed firm he could be investigated and severely sanctioned by the SEC.

In the meantime, following the South African Intergovernmental Fintech Working Group (IFWG)’s launch of a brand new place paper on cryptocurrencies, it’s now unclear if the JSE’s rejection of the bitcoin ETF goes to face. In a brand new place paper on cryptocurrencies (which printed simply after the JSE rejection of the ETF proposal) the IFWG recommends the regulation of the crypto ecosystem.

If accepted, the IFWG suggestions will see South Africa changing into one of many first nations in Africa to manage cryptocurrencies. Regulation of cryptocurrencies, in flip, will seemingly drive the JSE into revisiting its choice to reject Sygnia’s request.

What do you consider the JSE’s rejection of Sygnia’s bitcoin ETF software? Inform us what you assume within the feedback part beneath.

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