Roughly, there are 190 cryptocurrency exchanges in the world. Soon, we can expect one more to be added to the list. One major difference is the new one that is going to come up in South Africa is backed by an investment management firm Sygnia, which currently manages $14.7 billion (ZAR 184 billion) worth assets. The cryptocurrency exchange is expected to go live in 3Q18.
Sygnia has stated that it will operate the exchange as per the guidelines provided by the New York State Department of Financial Services (NYSDFS), which issues BitLicense. Sygnia aims to ensure highest levels of security and integrity for its clients. Therefore, all policies, processes, and protocols will be based on existing regulatory framework applicable to virtual currency exchanges registered and operating in the state of New York.
The exchange is also planning to launch a native currency named ‘SygniaCoin’ in 3Q18. According to Magda Wierzycka, the chief executive officer of Sygnia “The cryptocurrency market is evolving at a rapid pace internationally and domestically, and is attracting both domestic and international flows.”
Magda Wierzycka explained the decisions as one of “a number of new strategic initiatives that will position Sygnia for the evolving digital future, as well as help its new business development and distribution efforts.”
Sygnia believes that it is well placed to become the first major financial services institution to enter the cryptocurrency space and offer investors a reliable and secured trading platform. Sygnia wants to ensure that its platform is built on world-class infrastructure. Customers will also experience a well planned custody and integration with other standard savings products.
While acknowledging that South African Revenue Service has instructed its citizens to pay income tax on cryptocurrency earnings, based on normal tax rules, Ms. Wierzycka stated that Sygnia is expecting a proper regulatory framework soon for cryptocurrencies. At a later stage, Sygnia is planning to launch a “Sygnia Cryptocurrency Fund” to serve institutional investors.
Sygnia Ltd. has offices in Cape Town, Durban, and Johannesburg. The investment management firm currently employs over 175 staff, and manages the assets of over 6,000 individual clients, and 600 international clients.
