South African High Court holds that Cryptocurrencies are not currencies envisaged under Exchange Control Regulations under the Currency and Exchange Act.
<p><strong>Case Background </strong><br/><br/>Leo Cash and Carry (Pty) Ltd (LCC), entered into a commercial credit relationship with Standard Bank in late 2019 resulting into bank granting LCC an overdraft facility of R40 million. The facility was secured, in part, by a pledge over a R15 million Money Market Call Account held by the Bank. <br/><br/>Later on following investigations into LCC's activities, use of cryptocurrencies and transfer of cryptocurrencies to offshore accounts, the South African Reserve Bank instructed the freezing of LCC's accounts. Standard Bank challenged this action. <br/><strong><br/>Courts Finding and Reasoning</strong><br/><br/>The Court while interpreting the provisions of the Exchange Control Regulations found that cryptocurrencies are neither legal tender nor “capital” as defined in the current regulatory framework. The Court rejected SARB’s submission that the existing definitions could be extended to cover digital assets by implication. Instead, the Court held that such a substantial shift in regulatory scope requires express legislative action, not judicial interpretation.</p><p>Further, the Court distinguished between “money” and intangible digital tokens stored in decentralized systems. Noting that cryptocurrencies are recorded on distributed blockchain ledgers and are not governed by any central authority, the Court found their treatment under the 1961 regulations to be incompatible with the regulatory purpose of exchange control.<br/><br/><strong>Key Takeaways</strong><br/><br/>While navigating questions around cryptocurrencies, courts of law take a conservative approach depending on the jurisdictional legal framework. It is important that Legislatures enact new laws or amend the existing laws to accommodate what has been defined as a disruptive currency framework. <br/><br/>For any inquiries regarding the status of the regulatory landscape of cryptocurrecies in Uganda, do not hesitate to reach out. <br/><br/><a class="tc-blue" href="https://twocents.space/insights/tag/cryptocurrencies">#cryptocurrencies</a> <a class="tc-blue" href="https://twocents.space/insights/tag/regulation">#regulation</a> <a class="tc-blue" href="https://twocents.space/insights/tag/cryptoadoption">#cryptoadoption</a></p>
At the end of each month, we give out cash prizes to 5 people with the best insights in the past month
as well as coupon points to 15 people who didn't make the top 5, but shared high-quality content.
The winners are NOT picked from the leaderboards/rankings, we choose winners based on the quality, originality
and insightfulness of their content.
Here are a few other things to know
1
Quality over Quantity — You stand a higher chance of winning by publishing a few really good insights across the entire month,
rather than a lot of low-quality, spammy posts.
2
Share original, authentic, and engaging content that clearly reflects your voice, thoughts, and opinions.
3
Avoid using AI to generate content—use it instead to correct grammar, improve flow, enhance structure, and boost clarity.
4
Explore audio content—high-quality audio insights can significantly boost your chances of standing out.
5
Use eye-catching cover images—if your content doesn't attract attention, it's less likely to be read or engaged with.
6
Share your content in your social circles to build engagement around it.
Contributor Rankings
The Contributor Rankings shows the Top 20 Contributors on TwoCents a monthly and all-time basis.
The all-time ranking is based on the Contributor Score, which is a measure of all the engagement and exposure a contributor's content receives.
The monthly score sums the score on all your insights in the past 30 days. The monthly and all-time scores are calcuated DIFFERENTLY.
This page also shows the top engagers on TwoCents — these are community members that have engaged the most with other user's content.
Contributor Score
Here is a list of metrics that are used to calcuate your contributor score, arranged from
the metric with the highest weighting, to the one with the lowest weighting.
4
Comments (excluding replies)
5
Upvotes
6
Views
1
Number of insights published
2
Subscriptions received
3
Tips received
Below is a list of badges on TwoCents and their designations.
Comments