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Financing, investment and government support
Does the government provide any incentives or support programmes to promote fintech innovation in your jurisdiction (eg, tax incentives, grants and regulatory sandboxes)?
The South African Reserve Bank (SARB) issued a media statement in February 2018 setting out its approach to fintech innovations. In its statement, SARB indicated that it is taking a balanced approach to technological innovations in light of potential benefits and risks. SARB has recently established the FinTech Programme to strategically assess the emergence of fintech in a structured and organised manner and consider its regulatory implications. The main goal of the programme is to track and analyse fintech developments and to assist policymakers in formulating frameworks in response to these emerging innovations. According to the media statement issued by SARB on February 13 2018, the programme will focus on three primary objectives:
- review the SARB’s position on private cryptocurrencies to inform an appropriate policy framework and regulatory regime;
- investigate and decide on the applicability of innovation facilitators for SARB; and
- launch Project Khokha, which will experiment with distributed ledger technologies.
Has the government concluded any international cooperation agreements to promote and facilitate the cross-border expansion of fintech businesses?
Financing and investment
What private financing and investment schemes are available and commonly used for fintech start-ups in your jurisdiction?
South Africa has experienced an increase in the introduction of pooling schemes. These are strictly limited to soliciting and accepting cryptocurrency as a participatory interest. The pooled cryptocurrencies are then further loaned to borrowers on cryptocurrency exchanges for a return.
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