South African Professor Accuses Central Bank Officials of Spreading Misinformation Damaging Crypto Industry – Bitcoin News – Bitcoin News | Omd Cialis

A South African professor, Steven Boykey Sidley, has branded as “balderdash” the deputy governor of South Africa’s central bank that “90% of cryptocurrency transactions” are illegal. The professor also accused the senior central bank official of disseminating inaccurate information that is “causing untold damage to an important new industry.”

Only 0.15% of crypto transactions involve illegal activities

A South African university professor and author, Steven Boykey Sidley, has criticized Kuben Naidoo, the country’s deputy central bank governor, for saying “90% of cryptocurrency transactions” are illegal. Sidley called Naidoo’s claims “mongering,” insisting that “true statistics are continually being compiled and reported by numerous data analytics companies,” proving that only a tiny fraction of crypto transactions are linked to illicit activity.

In an opinion piece published by the Daily Maverick, Sidley accused the Deputy Governor of the South African Reserve Bank (SARB) of “spreading misinformation that grabs headlines and is causing untold damage to an important new industry”. To support this theory, Sidley points to data provided by Chainalysis, which suggests that only 0.15% of crypto transactions involve illicit activity.

For Sidley, who is also a co-author of the book Beyond Bitcoin: Decentralized Finance and the End of Banks, that number is much lower when compared to illicit transactions involving fiat currency.

“Furthermore, the number of transactions associated with illegal transactions in the real world of rands and dollars where we live is 5%. That’s 50 times higher than crypto (and those are the only ones we know of),” Sidley is quoted as saying.

According to the professor, since blockchain transactions are public, it is impossible to go unnoticed in committing a crime. Sidley added that this level of transparency makes “tracking the proceeds of crypto crime” much easier.

Trying to regulate a new asset class with old laws won’t work

Meanwhile, Sidley also commented on the SARB’s intention to regulate cryptocurrency as a financial asset. As previously reported by News, the SARB expects to have a crypto regulatory framework in place by the end of 2023. According to Sidley, such a regulatory framework removes the uncertainty currently plaguing the entire industry and allows institutions like banks to get into “this asset and service space.”

While such a regulatory framework is expected to provide some level of certainty, Sidley argued that it will uncover an even bigger problem awaiting the industry – the regulation of cryptocurrency with laws passed more than a century ago. He said:

What the SARB (and every other regulator) is trying to do is fit crypto into existing regulations designed many decades ago for assets — stocks, currencies, commodities, collectibles, and the like — that were hundreds of years old. It will not work.

Sidley insisted that these entirely new asset classes “need to be properly defined before the whole field can be rationally regulated.”

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Terence Zimwara

Terence Zimwara is an award-winning Zimbabwean journalist, author and writer. He has written extensively on the economic woes of some African countries, as well as how digital currencies can provide an escape route for Africans.

photo credit: Shutterstock, Pixabay, WikiCommons

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