South Africa’s Sygnia Joins the Bitcoin Bandwagon, Set to Launch Own Cryptocurrency Exchange
The African continent is not ready to occupy the back seat in the blockchain and cryptocurrency revolution, as several firms in the region are contributing their bit to the crypto movement. On May 25, 2018, Johannesburg-based Sygnia investment firm has hinted it’s starting a blockchain-powered virtual currency exchange by the end of 2018.
Per BusinessTech, Sygnia CEO, Magda Wierzycka has revealed the firm’s interest in the nascent world of cryptocurrencies. Sygnia, which currently offers investors assets management services with over 600 institutional clients, is looking to launch their own crypto exchange in the third quarter of 2018.
“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,” said Wierzycka.
The highly reputable South African firm is poised to become a big whale in the African and global Fintech and cryptocurrency ecosystem shortly. Wierzycka added:
“With its Fintech focus, Sygnia is well-positioned to become the first major financial services institution to embrace cryptocurrencies and to offer investors a secure trading and execution platform backed by an international infrastructure, well-designed custody and integration with standard savings products.”
Positive Despite Regulatory Uncertainties
At a time when financial authorities all around the world are formulating amenable and regulations to govern their local digital currency industry, the South African Reserve Bank (SARB) has made it categorically clear that blockchain-based digital currencies are not to be called cryptocurrencies as they do not meet the criteria to be categorized as money.
“We don’t use the term ‘Cryptocurrency’ because it doesn’t meet the requirements of money in the economic sense of the stable means of exchange, a unit of measure and a stable unit of value. We prefer to use the word ‘cyber-token,’” said the SARB deputy Governor, Francois Groepe.
Despite the views of the apex bank, the Sygnia boss remains optimistic there will be “further regulatory frameworks to follow” and things will settle down soon. For now, however, the SygniaCoin cryptocurrency exchange will be tailored to operate based on the New York BitLicense law. In her words: “To ensure the highest levels of integrity and security for clients, we are basing our policies, protocols and processes on existing regulatory framework applicable to cryptocurrency exchanges registered in New York State, USA,” Wierzycka hinted.
“We will also be able to offer investors the option of holding cryptocurrencies on Sygnia Alchemy administration portal, alongside their investments through the Sygnia LISP and in SURF.”
The Bitcoin Price Slump Continues
However, it appears the entry of these firms into the digital currency space have only succeeded in triggering a massive crypto bloodbath, and if the predictions of reputable analysts like Willy woo is anything to go by, the bearish trend may not go away anytime soon.
At press time, the price of bitcoin sits at the $7,500 price area.