A group of South African regulators have released a report calling for stricter regulations of the digital currency industry. The country has seen a rising adoption of digital currencies which the regulators believe could pose a risk if not adequately monitored. In a new policy paper, the regulators called on legislative provisions that will pave the way for domestic payments using digital assets, but in a regulatory sandbox for accurate monitoring in the interim period. In its \u201cPosition Paper on Crypto Assets\u201d, the Intergovernmental Fintech Working Group (IFWG) suggested a number of measures that seek to bring the industry under the purview of the regulators. IFWG is made up of regulators including the South African Reserve Bank, the National Treasury and the Financial Sector Conduct Authority. It called for an enabling legal framework for the regulated use of digital currencies for domestic payment purposes. It stated, \u201cPayments using crypto assets will, in the interim period, be subjected to a regulatory sandbox approach, where the use of crypto assets for domestic payments may be assessed in a controlled environment to determine the consequences of potential adoption.\u201d The use of digital currencies will however be at a user\u2019s own risk, the paper outlined. IFWG also touched on other facets of the industry, including ICOs. It recommended that companies conducting an ICO must stick as strictly as possible to the country\u2019s securities regulations. The issuer must release a detailed whitepaper that sets out \u201cspecific requirements and details on disclosures about the company, a governance plan, any agreement(s) between the customers and ICO issuers, comprehensive independent audits, and specific reports (to be confirmed) to regulators.\u201d Adoption of digital currencies in South Africa has been high, with a survey by Hootsuite ranking it top globally for digital currency owners relative to the number of Internet users. The survey found that over 10% of Internet users in the country own digital currencies. Regulators have taken note of this surge in adoption, making regulations all the more critical. And while the watchdogs make an effort to regulate the industry, they recognize that this only works if other countries issue their own regulations. \u201cThe danger of a fragmented international regulatory approach and national authorities reacting with varying degrees of regulatory stringency is that crypto asset-related activities might potentially migrate towards jurisdictions that are regulated less stringently in a \u2018race to the bottom\u2019 as crypto assets are borderless. A coordinated global approach is therefore vital,\u201d the paper stated.