Abstract

Crypto assets are a growing market and do not appear to be the fad that many thought they would be when the first crypto asset, namely Bitcoin, was created in 2008. As such, regulators and interested investors alike continue to debate the need, if any, to regulate crypto assets, considering the development of illicit activities using crypto assets to defraud the public. However, the decentralised nature of crypto assets creates obstacles for regulators due to the anonymity surrounding them. All is not lost for regulators, though; this article aims to illustrate how the basic principles of risk management and corporate governance can be applied to perhaps ensure a future for both crypto assets and fiat currencies to be regulated in one market. Across the globe, jurisdictions have taken different approaches to the issue of crypto assets, with some banning crypto assets and others seeing the true economic potential for crypto asset use by their citizens. In South Africa, the Government has already taken steps to declare crypto assets as financial products; therefore, crypto asset regulation in South Africa has taken a step towards supporting the future use and investment of this growing financial market.