South African cryptocurrency exchanges are urging authorities to remove the ban that prohibits pension funds from investing in crypto assets. They argue that the regulation should be reviewed to allow South Africans to benefit from the substantial growth of cryptocurrencies. Since the ban was implemented in January 2023, crypto assets have seen a 325% increase in value, while the local currency has depreciated, eroding savings. Leaders in the South African crypto community are calling on the Treasury to promote progress and consider formulating a national cryptocurrency policy with industry input. The removal of the prohibition would align South Africa with global financial market leaders and potentially increase institutional participation and investor protection. The initial regulations allowed pension funds to invest up to 2.5% of their holdings in crypto assets, but a government proposal in late 2021 barred such investments entirely. The move was justified as a way to protect consumers from cryptocurrency risks, but industry leaders argue that South Africans should have exposure to crypto assets considering their strong performance.



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