Electronic Theses and Dissertations (Masters)
Permanent URI for this collectionhttps://hdl.handle.net/10539/37939
Browse
Search Results
Item Cryptocurrencies and the Risks of Money Laundering and Terrorist Financing: Proposals for a Regulatory Regime(University of the Witwatersrand, Johannesburg, 2023) Masuku, Owen Jabulani; Kawadza, HerbertRapidly emerging new technology and payment methods are gradually replacing traditional payment methods and sovereign legal tenders as viable substitutes in the global economy. The emergency of cryptocurrencies on the world’s economies has brought with it excitement, frustration, and uncertainty in equal measures. Cryptocurrencies are decentralised convertible virtual currencies that rely on the use of blockchain technology and the math-based peer-to-peer reference without the reliance on a central controlling authority to administer, monitor, regulate and exercise oversight control. Cryptocurrencies offer many potential benefits, such as speed of payment settlement, reduced costs of doing business, speedy cross-jurisdictional reach, and accessibility, as well as the anonymity of the users compared to the traditional payment methods. The integrity of the financial systems is at danger due to these same benefits and advantages. The risks and dangers of money laundering, terrorist financing, fraud, tax evasion, and other unlawful actions are associated with cryptocurrencies. The first cryptocurrency, Bitcoin, was created in 2008. The internet and globalization have allowed cryptocurrencies to enter South Africa. These currencies are not accepted as legal money in the South African legal system at this time. The objective of this desk-top research is to consider, amongst others, the following: what cryptocurrencies are, why cryptocurrencies are a Money Laundering and Terror Financing (ML/TF) risk, the red flags in ML/TF through cryptocurrencies transactions, structural and regulatory weaknesses associated with ML/TF through cryptocurrencies and the recommendations for structural and regulatoryenhancements and changes to combat the ML/TF risks from cryptocurrencies. This thesis recommends the need for regulatory intervention in South Africa. It argues that there is a need to regulate cryptocurrencies through the amendments to the relevant legislations such as the Financial Intelligence Centre Act, the Consumer Protection Act, Financial Advisory and Intermediaries Act, amongst othersItem Reconsidering the debate relating to the proposals for the regulation of cryptocurrencies in South Africa(University of the Witwatersrand, Johannesburg, 2023) De Sousa, Michaella Alexandrine; Kawadza, HebertWords cannot express my gratitude to my supervisor, Professor Herbert Kawadza for his vital patience and feedback. His guidance and vast knowledge in commercial and banking law was the main reason I hoped to have him as my supervisor for the completion of my LLM Research Report, without him I would still be lost in my drafting. I am extremely grateful for the guidance and encouragement of my two very close colleagues and mentors, Daven Dass and Alicia Raymond, their encouragement and conversation pushed me through writer’s block and self-doubt. I certainly could not have undertaken this journey without my strong support system and the most important people in my life, my father, Rui de Sousa; my sister, Claudia de Sousa; and partner, Nicholas Elliott. Their belief in me and ongoing patience in reading and rereading every iteration of this LLM Research Report will always be appreciated. This degree would never have been completed without them. As the adage goes, I am because they are, and I will always be indebted to them. Lastly, this LLM degree is for my late mother, Carla de Sousa, without her guidance and belief I would not be where I am now, and I will always be grateful to herItem The Proposal for the Regulation of Cryptocurrencies in South Africa and the Possible Impact on the Financial Sector.(University of the Witswatersrand, Johannesburg, 2023) Bahadur , KiaraThe global pandemic engendered a shift in traditional banking activities, forcing the banking and finance sector to adapt, due to technological advances, in the past few years. The pandemic conditions accelerated the demand for a digital banking environment and e-commerce transactions. The white paper titled “Bitcoin: A peer-to-peer electronic cash system”, authored by Satoshi Nakamoto around 2008, outlined the fundamental elements of Bitcoin. While describing the core elements of cryptocurrencies, it did not furnish a definition. The distinctive features of a centralised and decentralised exchange can discern what type of cryptocurrency individuals are dealing with.Once the type of cryptocurrency can be identified, the advantages and disadvantages can beevaluated. Advantages include the ease of entry, the increased efficiency of payments, anonymity, independence from third parties, and the lack of traceability. The disadvantages include untraceable transactions, anonymity, and increased speed of payment which can create an environment that is more conducive to being susceptible to illicit and illegal activities. Given the irreversibility of transactions and level of anonymity, holding wrongdoers accountable can be challenging. An assessment of the risks must be conducted, as not only is there a loss of direct contact with the client, but also a loss of a third intermediary which alters how the financial sector operates. To mitigate risk for individuals, this dissertation will explore preventative measures such as regulatory suggestions and KYC mechanisms. It further aims to examine the regulation of cryptocurrencies within South Africa, accessing its potential impact on the financial sector and highlighting the gaps in the regulatory framework. This dissertation will further focus on the legislative instruments such as the Financial Intelligence Centre Act No.38 of 2001, the South African Reserve Bank Act 90 of 1989, and the Financial Markets Act 19 of 2012. Additional consideration will be given to the African Reserve Bank Position Paper on virtual currencies, along with the Position Papers on crypto assets published by the Intergovernmental Fintech Working Group in 2020 and 2021. In providing comparative insights, this dissertation explores the regulatory approaches of the United States and China to elucidate potential strategies for effective regulation in South Africa and identify areas of improvement. Furthermore, it will employ qualitative research methods to explore the possible impact on the financial and banking sector