Sygnia announces plans for crypto exchange in South Africa

Johannesburg-based asset management company Sygnia Ltd. is planning to launch its first cryptocurrency exchange, called Sygniacoin, in the third quarter of 2018, local news outlets reported.

Last week, Sygnia Ltd. CEO Magda Wierzycka said at a meeting to discuss the 2018/19 financial year, “The cryptocurrency market is evolving at a rapid pace internationally and domestically, and is attracting both domestic and international flows.”

Addressing the company’s strategy group, Wierzycka stated that for the last six months, the company has been tirelessly working to join the digital market. The firm plans to take on cryptocurrency markets both in South Africa and the rest of the world. Wierzycka said Sygnia is well positioned to become a major financial service institution as it has been largely involved with fintech and related products, noting that venturing into cryptocurrency exchanges would provide a good investment opportunity for the company and the investors.

Sygnia plans to operate its cryptocurrency exchange in accordance with the principles laid down by the New York’s legislative bodies in regards to virtual currencies. The firm also announced that it would be launching a Sygnia cryptocurrency fund in the coming future.

The take-off will however not be an easy task for Sygnia. South African authorities recently launched investigations concerning cryptocurrencies. Similarly, authorities are investigating an alleged Ponzi scheme responsible for loses in over 1 billion ZAR ($80 million). The scheme managed to dupe investors by promising to give returns of up to 2 percent daily, 14 percent weekly and 50 percent monthly, investigators said.

South Africa has seen a significant growth in cryptocurrencies, crypto exchanges, and other blockchain-related activities. Growth in cryptocurrency markets has led to financial regulators, the South African Revenue Services (SARS), to impose taxes on all cryptocurrency assets.  This was implemented in April with every citizen in the country owning cryptocurrency and related assets expected to include them in this year’s income tax filing.