South Africa’s Johannesburg Stock Exchange (JSE) rejected the listing request of the new Bitcoin Exchange Traded Fund (ETF) from the asset management company Sygnia. In defending the rejection of Sygnia’s latest proposal, JSE cited “reasons for the lack of a regulatory framework for cryptocurrencies.”

Accidental rejection

At the same time, a report stated that although Sygnia did not expect to “immediately accept Bitcoin ETFs”, company executives still did not expect such a “rapid rejection.” Instead, in response to the JSE decision, Sygnia founder and executive chairman Magda Wierzycka said:

We want JSE to put it in “File 13”, and if they are ready, then Sygnia will be the first in the queue.

In addition, Wierzycka stated that the Bitcoin ETF “will attract the attention of JSE and thus attract funds.” At the same time, the same report shows that this is the second time that JSE has rejected a similar application from Sygnia. In 2017, Sygnia tried to list the world’s first cryptocurrency ETF on JSE, but failed. At the time, John Burke, a former executive of the exchange, stated that JSE was “not ready to approve cryptocurrency listings.”

Bitcoin’s staying power

In another report, Wierzycka was quoted to express her belief in the staying power of Bitcoin. She also discussed how the price of crypto assets is manipulated by “a very powerful and influential person.” she says:

The volatility we are seeing is an-obviously unexpected-function, which I call Elon Musk’s market manipulation. If this happens to a listed company, he will be investigated and severely sanctioned by the US Securities and Exchange Commission.

At the same time, after the South African Intergovernmental Fintech Working Group (IFWG) released a new position paper on cryptocurrencies, it is not clear whether the JSE’s rejection of the Bitcoin ETF will be established. In a new position paper on cryptocurrencies (published after JSE rejected the ETF proposal), the IFWG recommended regulation of the crypto ecosystem.

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If accepted, the IFWG’s recommendations will make South Africa one of the first countries in Africa to regulate cryptocurrencies. In turn, the regulation of cryptocurrencies may force JSE to reconsider its decision to reject Sygnia’s request.

What do you think about JSE’s rejection of Sygnia’s Bitcoin ETF application? Tell us what you think in the comments section below.

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