Purple Group Limited, a company listed on the Johannesburg Stock Exchange (JSE), has announced that it will add Bitcoin and Ethereum to its trading platform, writes Live Bitcoin News.
Users will now be able to buy the two major cryptocurrencies or open short positions using South African rand. Commentators have suggested that the move was unexpected given that the online trading platform has been successful over time without choosing to deal in cryptocurrencies.
Despite the recent downtrend in crypto markets, clients of Purple Group have reportedly expressed an interest in trading in both Bitcoin and Ethereum over the past few months, leading to the firm deciding to make the digital currencies available.
Cryptocurrencies remain of great interest to existing financial service providers, and this latest move reflects the current trend towards cryptocurrency in South Africa this year, with other banks now looking at their options and considering their next moves. The First National Bank itself is exploring is in a similar position, although major banks becoming involved in crypto trading is still far from becoming a reality at present.
South Africa offers relatively easy crypto trading of Bitcoin and Ethereum with local exchanges offering a variety of services with even international brokerage houses offering access to a range of cryptocurrencies.
It’s been suggested that shorting cryptocurrencies, as Purple Group are planning to do, may lead to further market volatility, with Bitcoin futures supposedly adding to Bitcoin’s drop in value in 2018, although this supposition hasn’t actually been tested.
Purple Group trading specialist Barry Dumas suggests that crypto markets will stabilize given clients’ growing familiarity with the market. In April of this year, the South African Central Reserve Bank announced moves towards overseeing cryptocurrency and fintech developments in the country, suggesting rather than taking prohibitive regulatory measures, it would introduce an investigative unit which would promote growth and innovation.
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