TL;DR,

• The African National Congress under Ramaphosa forms historic coalition government while maintaining pro-crypto policies and pioneering regulatory frameworks in Africa.
• According to the Financial Sector Conduct Authority, South Africa’s crypto industry will continue to develop.
• Ramaphosa encourages youth participation in building local blockchain solutions.

Cyril Ramaphosa bags his second term, securing a win for the African National Congress. The re-elected president announced a pro-crypto agenda focusing on leading South Africa to adopt and regulate digital assets properly.

Despite the ANC losing its majority, this election result is not expected to impact the country’s crypto industry significantly.

South Africa Re-Elects Cyril Ramaphosa of the African National Congress as President

President Cyril Ramaphosa has secured a second win for the ANC on Friday, leading the country’s first multi-party coalition government. The ANC secured 159 seats, falling short of the 200 required.

Consequently, a fragile coalition government, dubbed the Government of National Unity, was formed with the Democratic Alliance (DA), Inkatha Freedom Party, and the smaller Patriotic Alliance.

The ANC has ruled South Africa for 30 years since the end of apartheid in 1994. This election grants the ANC another five years of governance, albeit without the substantial majority it once held. In the previous parliament, the ANC had 230 seats.

South Africa’s Pioneer Status in African Crypto Regulation Continues

The election results are not anticipated to influence South Africa’s burgeoning crypto industry significantly. The Financial Sector Conduct Authority(FSCA), the nation’s primary regulator, is at the forefront of establishing a crypto licensing regime. This regime involves licensing digital asset firms, with companies like Luno, Zignaly, and VALR being among the first to receive licenses in April.

RELATED: South Africa Issues Historic Crypto Licences to Seventy Five Companies

In 2022, South Africa included virtual asset service providers in its Financial Advisory and Intermediary Services Act, thus regulating digital assets as financial products. The nation’s Intergovernmental Fintech Working Group is expected to examine use cases for stablecoins, consider regulatory responses this year, and explore the implications of tokenization.

Regulatory Developments in the Crypto Sector

In April, South Africa began consulting on a directive to include crypto in the country’s Travel Rules. As per the document, once gazetted, local and international Virtual Asset Service Providers(VASPs) must produce transaction information in wallets and passports.

The new draft is a play to keep up with global crypto compliance frameworks, which require nations to share information on crypto transactions to combat money laundering. Investors, governments and participants within the industry have been burned more than once by crypto’s anonymity. As one of Africa’s leading crypto ecosystems, South Africa intends to introduce a new crypto licensing regime for its stablecoin and tokenization projects.

South Africa’s Pro-Crypto Stance to Continue as Ramaphosa Secures Second Term

Forming a coalition government represents a watershed moment in South African politics. The African National Congress and its opposition, the pro-business Democratic Alliance, have agreed to collaborate in South Africa’s new government of national unity. This historic accord allowed President Ramaphosa to secure a second term, re-elected by lawmakers with 283 votes.

RELATED: South African Crypto Regulation Advances While Tax Mechanics Remain Abstract

Rivaling Nelson Mandela’s 1994 victory in ending apartheid, the agreement between both coalitions is a step toward building SA’s crypto ecosystem. President Ramaphosa has made it clear that he intends to take South Africa to the next economic and technological space.

Stability for Crypto Amidst Political Transformation

The ANC’s loss of a majority for the first time in the May 29 election led to two weeks of intense negotiations with other parties. This culminated in the coalition government’s formation as the new parliament convened in Cape Town. DA leader John Steenhuisen described the day as historic, marking a new chapter focused on the country’s interests and future.

The National Assembly’s election of a DA lawmaker as deputy speaker, alongside an ANC politician as a speaker, demonstrated the practical implementation of power-sharing between the two parties. The focus is on collaborative governance, tackling core issues like poverty, inequality and corruption.

The DA advocates for scrapping some of the ANC’s Black empowerment programs, arguing they have mainly benefited a politically connected elite and proposing good governance and a strong economy that benefits all South Africans.

Some ANC politicians have opposed the DA’s presence in the government. In other updates, the Economic Freedom Fighters, who secured 10%, criticized the DA for focusing on privileged white interests rather than local pitfalls. The DA promptly denies this charge.  The new regime brings renewed hope for a continued pro-crypto narrative. Additionally, the president has advocated for local youths to dive into the sector and build local solutions.