Major South African Investment Firm to Commence Cryptocurrency Exchange Service

The fintech industry is slowly being pulled towards the burgeoning popularity of blockchain technology. This popularity stems from the several advantages that the new innovation offers to the industry. Transparency, quicker transaction time, cheap cost and traceability are just some of them.

Experts have warned that those who refuse to at least investigate how blockchain can improve their platform are in danger of getting overtaken by those who will. With this, major South African investment firm Sygnia Asset Management is stepping into the crypto space, CoinTelegraph reported.

The firm, with 180 billion rand ($14.5 billion) under its wing, announced that it will open a digital currency exchange services later this year. Called “SygniaCoin,” the cryptocurrency exchange is slated to take flight in this year’s third quarter, according to CEO Magda Wierzycka.

“The cryptocurrency market is evolving at a rapid pace internationally and domestically, and is attracting both domestic and international flows,” Wierzycka said. “With its fintech focus, Sygnia is well-positioned to become the first major financial services institution to embrace cryptocurrencies and to offer investors a secure trading and execution platform backed by an international infrastructure, well-designed custody, and integration with standard savings products,” the CEO went on.

SygniaCoin' policies will mirror an already existing legal foundation called the NY BitLicense. This regulatory framework is the current policy adopted by crypto exchanges listed and operating in New York State, USA.

South African Revenue Service has already hinted that tax is to be levied on those trading and investing in digital currencies. Wierzycka understands this and expects other legal groundwork will soon follow.

The group is also confident that the adoption of blockchain tech will significantly improve their existing retail framework. The innovation is projected to decrease expenditure, increase scalability and create opportunities for offshore expansion.

A recent report from “Big Four” auditing giant Deloitte stated that the retail and consumer packaged market is poised to greatly benefit from blockchain integration. They did caution, however, that research should be done before incorporating the technology into an existing framework to minimize expense and maximize the return value of the implementing cost.