South Africa’s Johannesburg Inventory Alternate (JSE) has rejected a request by the asset administration agency, Sygnia, to checklist a brand new bitcoin exchange-traded fund (ETF). In justifying its rejection of the newest proposal by Sygnia, the JSE cites the “lack of a regulatory framework for cryptocurrencies as the rationale.”
Sudden Rejection
In the meantime, a report means that whereas Sygnia was not anticipating “an instantaneous acceptance of the bitcoin ETF”, firm executives nonetheless didn’t anticipate such “a fast rejection.” As an alternative, in her response to the JSE’s resolution, Sygnia founder and government chairman Magda Wierzycka mentioned:
We anticipated the JSE to place in it ‘file 13’ and if and once they have been prepared that Sygnia can be the primary within the queue.
As well as, Wierzycka says the bitcoin ETF “would have attracted consideration, and in flip cash, to the JSE.” Within the meantime, the identical report reveals that that is the second time the JSE has rejected an analogous software by Sygnia. In 2017, Sygnia unsuccessfully tried to checklist the world’s first cryptocurrency ETF on the JSE. On the time, a former government with the alternate, John Burke, recommended the JSE “was not able to approve cryptocurrency listings.”
Bitcoin’s Staying Energy
In a unique report, Wierzycka is quoted expressing her perception in bitcoin’s endurance. She additionally discusses how the crypto asset’s value has been manipulated by “one very highly effective and influential particular person.” She mentioned:
The volatility we’ve got seen is a—clearly sudden—operate of what I’d name market manipulation by Elon Musk. If that occurs to a listed firm he can be investigated and severely sanctioned by the SEC.
In the meantime, following the South African Intergovernmental Fintech Working Group (IFWG)’s launch of a brand new place paper on cryptocurrencies, it’s now unclear if the JSE’s rejection of the bitcoin ETF goes to face. In a brand new place paper on cryptocurrencies (which printed simply after the JSE rejection of the ETF proposal) the IFWG recommends the regulation of the crypto ecosystem.
If accepted, the IFWG suggestions will see South Africa changing into one of many first nations in Africa to control cryptocurrencies. Regulation of cryptocurrencies, in flip, will possible power the JSE into revisiting its resolution to reject Sygnia’s request.
What do you consider the JSE’s rejection of Sygnia’s bitcoin ETF software? Inform us what you suppose within the feedback part under.
Picture Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This text is for informational functions solely. It isn’t a direct provide or solicitation of a suggestion to purchase or promote, or a advice or endorsement of any merchandise, companies, or firms. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the creator is accountable, instantly or not directly, for any harm or loss precipitated or alleged to be attributable to or in reference to using or reliance on any content material, items or companies talked about on this article.
Source link
