The South African Reserve Bank will introduce regulations next year that will see cryptocurrencies classed as financial assets to balance investor protection and innovation, Crypto Telegraph reports.

Cryptocurrency use in South Africa is in a healthy space, with around 13% of the population estimated to own some form of cryptocurrency, according to research from global exchange Luno. With more than six million people in the country having cryptocurrency exposure, regulation of the space has long been a talking point.

South African Reserve Bank deputy governor Kuben Chetty, said:

By all definitions, cryptocurrencies are an asset. It’s something that is tradable, it’s something that is created. Some have backing, others do not. Some may have a genuine underpinning, real economic activity.