South African pension funds will be prohibited from investing in digital assets directly or indirectly.
This update comes from the draft regulations prepared by the government writes the Government Gazette.
The current regulations allow investments in cryptocurrencies up to 2.5% of AUM within the general category of “other assets”.
The country’s authorities are trying strict control on the cryptocurrency industry.
In January 2021, the South African Financial Sector Oversight Authority submitted a proposal to regulate digital assets.
In September the chairman of the Reserve Bank of South Africa Lesetia Kganyago refused to recognize bitcoin as a currency.