Sygnia is plotting to become the first company to open, and a operate a cryptocurrency exchange in South Africa. The asset management firm will launch the proposed cryptocurrency exchange in November with a view of making it easy for people in the country to invest in virtual currencies.
SygniaCoin Cryptocurrency Exchange
SygniaCoin Cryptocurrency Exchange is the name of the cryptocurrency exchange that will allow people to trade the likes of Bitcoin (BTC) Ethereum (ETH) among other Altcoins. The firm intends to offer investors, a secure trading, and execution platform backed by an international infrastructure. In addition to the trading platform, Sygnia will also make available a fund that will invest in a variety of cryptocurrencies.
The South African Treasury department will have to establish a cryptocurrency exchange framework before the firm can launch its exchange. However, the Revenue service authority has already established a framework for cryptocurrencies. Such assets are currently categorized as ?other investments/digital assets? just like art and Krugerrands.
Sygnia venturing into the cryptocurrency space does not come as a surprise given the growing demand and interest in digital currencies in the country. The asset management company currently manages R181 billion worth of assets, which puts it in a position to finance such offerings. Currently, there are between R2 and R5 billion unregulated/ untaxed bitcoin trades in South Africa.
However, the firm?s entry into the cryptocurrency space continues to raise eyebrows. Growing concerns that Bitcoin could end up at zero is a major concern that critics fear could come to haunt the firm. Experts have raised concerns that it is only a matter of time until the bitcoin bubble bursts.
Sygnia boss Magda Wierzycka has sought to quash the concerns by reiterating her firm belief in the future of blockchain technology.??I have no doubt that cryptocurrencies aren?t going to disappear anytime soon. We do not take a view on the price of Bitcoin, nor will we promote it as an investment. It really is up to individual investors to make up their minds as to the price movement,? Wierzycka in a statement.
Disclaimer: Nothing in this article should be construed as financial advice in any way, nor as an encouragement to engage in cryptocurrency trading activity. This article was not sponsored by any entities or companies mentioned in the article. The only purpose of this article is to inform/educate on the topics discussed in the article.
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