Stability Of Sector Research Articles

From developmentalism to the homegrown economy of Ethiopia: The narratives and the reality

The political and economic narrative has shifted from developmentalism to the homegrown economy in post-2018 Ethiopia, but maintains the hegemony of the developmental state project of nation-building. This article investigates the shift to homegrown economic narratives, assesses the alignment with macroeconomic data and various sources and their implications. The narrative seeks an endogenous growth model and emphasizes macroeconomic stability, industrialization, private-sector growth, and contributions of key sectors for economic transformation. In some respect of industrialization and macro-financial stability, the macroeconomic data align with the reform narratives. However, agricultural productivity, export diversification, and dependency on imports remain critical challenges of the economy and implicate structural issues of the reform. Several factors, mainly civil war, Covid-19 and climate change, complicate this economic landscape. The article underlines a sustainable and inclusive growth in Ethiopia requires greater transparency and revisiting the assumptions and implications of the homegrown economic narratives.

BANKING SUPERVISION THROUGH SUPTECH

Victor Ababii E-mail: ababii.victor@gmail.com PhD student, Academy of Economic Studies of Moldova Head of Division, Reporting and Statistics Department, National Bank of Moldova Chișinău, Republic of Moldova https://orcid.org/0009-0008-9573-0204 Abstract: The banking system requires continuous development to enhance stability and integrity of the financial sector by implementing the latest technological tools. Maintaining a sustainable financial system, resilient to the shocks generated by the digital age and able to adapt and prevent emerging cyber risks remains a priority for supervisory institutions, in response to financial supervision and risk management framework through leveraging state-of-the-art technology for better governance and control. SupTech's primary objective is to promote inclusion in the financial sector by focusing on governance management and digital financing. It`s goal is to support the development of an inclusive financial system built on a robust digital infrastructure that enhances efficiency, transparency, and resilience. As technological innovations advance, financial services have to evolve, requiring financial institutions to adapt their surveillance technologies (SupTech) to safeguard citizen interests. Establishing both normative and technical SupTech frameworks helps supervisory authorities to eliminate gaps in internal processes, streamline workflows, fortify risk management, protect consumers, and maintain financial system stability amid ongoing market changes. Implementing a SupTech framework involves several stages: diagnosing the institution's current state, defining the purpose, vision, and objectives of SupTech, identifying key drivers and adaptive capabilities, evaluating necessary actions, and detailing steps for successful implementation. A thorough diagnosis of the supervisory institution involves IT solutions that facilitate continuous bank monitoring and offsite supervision. This diagnostic analysis includes: (1) Data products – identifying the position and trends to reach the level of AI-augment business intelligence tools; (2) Analytics – aiming to implement analytics tools perspectives; (3) Access controls - with the position on the agency - wide access; (4) Storage – oriented towards the use target of big data tools; (5) Validation and processing – aiming at the use of advanced data processing; (6) Collection – using the latest AI-based collection trends or alternative data sources. Configuring the SupTech framework involves transforming vulnerabilities into opportunities. For example, automating data flows can address deficiencies in manual data handling, risk assessment, and report generation. Implementing a data warehouse can solve challenges related to data consolidation, multiple analysis tools, system integration complexity, and data correlation. SupTech aims to provide supervisory authorities with reliable, high-quality data, aligning with best practices in governance and data management. This ensures consistency in the supervisory process and resilience to technological advancements. Digitizing surveillance processes is crucial for operational efficiency, with advanced analytics and business intelligence solutions enhancing surveillance information and decision-making. Keywords: SupTech, Fintech, Regtech, risks, data model. JEL classification: G21

Formation of methodological foundations for the analysis of national development in conditions of foreign economic discrimination

Purpose: is to form a conceptual approach to the analysis of the macroeconomic effects of external sanctions based on increasing the information content of the use of technical indicators in assessing the stability and vulnerability of the national economy to the effects of discriminatory restrictions in foreign economic activity. Methods: the study is based on the processing and analysis of data obtained as a result of content analysis of a significant number of scientific, scientific-practical, and expert sources of information.Methods of scientific generalization and classification, economic, expert and statistical analysis were used.Results: the analysis of the impact of sanctions restrictions on the key indicators of the characteristics of sustainable and innovative development of the discriminated national economy is carried out. An approach to assessing the impact of sanctions is presented based on a conjugate analysis of the dynamics of target groupings of indicators. An example of calculations, visualization and interpretation of the results of assessing sanctions resistance and export-import dependence of the national economy based on a set of technical indicators for significant areas of socio-economic development of the discriminated country is illustrated. The scope of application of the proposed approach in the formation of the development strategy and program (in terms of the implementation of the process of import substitution, ensuring technological independence and structural adaptation of the economy) is justified, taking into account the risks of sanctions restrictions.Conclusions and Relevance: the proposed approach to the analysis of sanctions restrictions based on the combined use of technical criteria for the dynamics of grouped indicators provides an increase in the reliability of estimates of their negative impact. However, aggregated estimates do not allow us to justify selective and targeted measures aimed at adapting the institutional and organizational conditions of the activities of specific economic agents in key areas of the national economy. A possible direction for further research may be the development of methodological and analytical tools for assessing the sanctions stability of economic sectors to substantiate the priorities of ensuring their technological independence.

CAMELS parameters’ impact on the risk of losing financial stability: The case of Russian banks

The banking sector stability determines the financial immunity of a national economy. Current economic and political tensions precondition the need for predicative diagnosis of factors behind a decrease in a bank’s financial stability taking into account national specificities. The paper aims to explore the impact of intrabank parameters on a risk of deteriorated financial stability of Russian banks. The methodological basis of the study is the theory of financial management as applied to the banking practice. The research methods include content analysis, multiple regression, and logit modelling. The evidence comes from the published financial statements of Russian banks for 2018–2023. The paper suggests an approach for rating banks according to their financial stability and develops logit models for evaluating the risk of losing financial stability based on the CAMELS parameters. The analysis demonstrates a noticeable positive impact of the return on assets and a noticeable negative effect of the overdue loans share on a bank’s financial stability. At the same time, capital adequacy and current liquidity produce an ambiguous effect on the financial strength: they are significant only up to a certain point, after passing which they no longer exert any impact on the financial stability (the so-called “surplus paradox”). The study finds that the impact of the parameters differs for the mediumand long-term forecasting horizons: for a 6-month period, the return on assets is a more significant predictor of the financial instability risk, while the overdue loans share is more important for a 12-month period. The findings extend the understanding of the influence that bank’s internal factors have on their financial stability and can be useful in building the algorithms for analysing and forecasting banking risks.

The Impact of Digital Financial Inclusion on Banking Sector Stability: Evidence from Developing Countries

The research explores the transformative impact of Digital Financial Inclusion on banking sector stability in developing countries, where advanced technologies reshape financial services. With a focus on FinTech, E-wallets, and digital transactions, the study addresses a critical gap in the existing literature by examining the impact of digital Financial Inclusion indicators, such as ATMs and mobile money accounts, on developing countries banking stability. This study contributes valuable knowledge to policymakers and financial professionals in a rapidly evolving digital era. Employing data from 36 developing nations and covering the period of 2011 to 2017, the research establishes a link between digital Financial Inclusion and enhanced banking stability. Z-score is used to measure financial stability, and ATMs and mobile money accounts are used to measure digital financial inclusion, covering the outreach and usage metrics. Macroeconomic variables like gross domestic product and inflation are included to capture broader economic influences on banking stability. A panel regression was used to analyse the data. The study found that digital Financial Inclusion proxies significantly impact the banking sector's stability. The attention for enhancing digital financial services in improving and maintaining the banking sector stability is reconfirmed from this study based on a larger data set of developing countries.

Cross-border banking and bank stability: evidence from Sub-Saharan Africa

AbstractBased on bank-level data from 29 Sub-Saharan African countries between 2005 and 2019, we apply panel fixed effects (FE) and two-step system GMM estimators to investigate whether increased cross-border banking affects domestic banking sector stability. We find significant evidence that the stability of banks in host countries declines with an increased presence of foreign banks—and the impact is more pronounced on banks that are small and less efficient. The stability impact of foreign banks is also found to depend on the quality of governance institutional factors in the host country. The findings shed some important insights on the downside of financial liberalisation policy in developing countries and the need for increased cross-border collaboration between home and host supervisory authorities in the SSA region—especially in jurisdictions where the foreign bank affiliates are systemically important. The domestic supervisory authorities thus need to effectively manage the inherent trade-off between reaping the benefits from international financial integration while effectively safeguarding domestic banking systems against cross-border contagion and fragility.

Crafting Banking Sector Stability Index for Sierra Leone

Stability in the banking sector of Sierra Leone is crucial because it gives confidence and trust in the banking ecosystem. However, it is vital to assess the health conditions of the sector, by means of a composite Banking Sector Stability Index (BSSI) for Sierra Leone. This BSSI will supplement the suite of early warning indicators of the financial system and offers a platform to keep policymakers informed about the dynamics in the ecosystem of Sierra Leone. This study developed a banking sector stability index (BSSI) for Sierra Leone, using a nest of financial soundness indicators and gauges the health of the banking ecosystem with short term forecasting tendencies conditions in the banking ecosystem. It applied statistical and Conference Board Methodology normalization processes on Sierra Leone’s banking data from 2019Q1 to 2022Q4. The resultant index traced fairly well the episodes of crisis in the system over the study period. It could, therefore, be employed as a complementary regulatory policy tool to gauge potential risks to enable monetary authorities take timely precautionary policy measures to assuage crisis in the banking ecosystem.

Sustainability and the domestic credit market: worldwide evidence

This paper aims to uncover the cross-sectional relationship between country-level sustainability performance and the domestic lending activity of commercial banks. Considering a worldwide sample of countries, it uses publicly available sustainability scores from SolAlability Sustainable Intelligence, macroeconomic data, and banking sector data from the World Bank. The results show that the country’s sustainability performance is positively related to the amount of domestic credit granted by banks to the private sector and negatively related to the importance of nonperforming loans. Moreover, looking at the pillars that constitute the sustainability scores, this work finds evidence that social cohesion, intellectual capital, and governance are the pillars of sustainability that affect domestic lending activity. Results survive several robustness tests concerning samples, variables’ definitions, and estimation procedures. Our results suggest that policies aiming at improving a country’s sustainability contribute to domestic banking sector stability and financial development. Specifically, measures that contribute to social cohesion and solidarity, innovation and value-added industries, and the country’s governance performance, contribute to the smooth functioning of credit markets.

The mediating role of intellectual capital on the nexus between diversification, financial stability and efficiency of commercial banks in Ethiopia

PurposeThe main objective of this study is to analyze the mediating role of intellectual capital in the relationship between diversification, financial stability, and efficiency of the banking sector in Ethiopia.Design/methodology/approachSecondary data for this study was obtained from audited financial statements of 17 Ethiopian commercial banks for a decade starting in 2013. A descriptive and explanatory research design with a quantitative research approach was employed. The seemingly unrelated Hierarchical regression analysis is used to estimate diversification’s effect on banks' financial stability and efficiency, considering the interaction between diversification and intellectual capital as a mediating variable.FindingsThe Mediation analysis reveals that asset diversification improves the financial stability of commercial banks when mediated by intellectual efficiency. Investment diversification negatively impacts risk-adjusted return on asset and Z score. Intellectual capital significantly enhances commercial banks' efficiency and financial stability in Ethiopia and mediates the relationship between geographic diversification, financial stability, and efficiency. The mediation analysis also indicates that intellectual capital significantly mediates the relationship between income diversification and efficiency.Practical implicationsThis study highlights the importance of intellectual capital and promotes its strategic allocation by management and regulatory bodies to enhance the financial stability and operational effectiveness of the banking industry in Ethiopia.Originality/value To the best of the researcher’s knowledge, this study is one of the rare attempts to investigate the mediating role of intellectual capital on the nexus between diversification, financial stability, and efficiency of commercial banks in Ethiopia.

India Insured by 2047: The Role of Insurance Companies, Distribution Networks and Regulatory Frameworks

This research article discusses the role of three key pillars i.e., insurance companies, distribution network, and regulatory frameworks that contribute to the growth and stability of the Indian insurance sector. It presents the key drivers and challenges for India to achieve the target of ensuring universal insurance coverage by 2047. The study provides valuable insights for policymakers and other stakeholders by highlighting the role that insurance company can play to ensure greater accessibility of insurance products for all through underwriting and managing various insurance products to cater to the diverse needs of the Indian population. It emphasizes the importance of an efficient distribution network to have a wider reach and the significance of a regulatory framework in safeguarding the interests of both insurers and policyholders.

Settlement of Bad Loans with Guarantee of Dependent Rights at Banks and Auction Houses Based on the Law on Dependent Rights No.4 of 1996 (Case Study: Decision No.550/Pdt/2019/PT MDN)

The interaction between economic development and the banking sector, particularly in the provision of credit, is crucial, with the resolution of non-performing loans (NPLs) being a significant issue. This study, titled "Resolution of Non-Performing Loans with Collateral Rights in Banks and Auction Houses," aims to investigate the mechanisms for resolving NPLs through the execution of collateral rights as stipulated by Law No. 4 of 1996. Utilizing Verdict No. 550/Pdt/2019/PT MDN as a case study, the research employs normative and legal analysis methods to explore the implementation of collateral rights in the auctioning of collateral assets when debtors default on their loans. The findings reveal the legal procedures and effectiveness of collateral execution in mitigating NPLs. The study concludes that the proper application of collateral rights laws can significantly aid in resolving NPLs, with implications for improving banking sector stability and credit recovery processes.

Chains of supplies in insurance services

Insurance activity involves the work of several entities, aimed at creating an insurance product, which is then offered to clients. In traditional terms, the management of chains of insurance services supplies focused on ensuring that actions taken by external entities in respect of insurance undertakings were not detrimental to the stability and security of insurance sector. The number of challenges faced nowadays concerning social and environmental issues results in a pressure from the public on major enterprises, including those from the insurance sector, that their and their subcontractors’ activities give rise to the least negative effects possible. The result of such pressure is also that the insurance and reinsurance undertakings are starting to implement the system of supplies chains management.The aim of this article is to present the legal provisions in force concerning chains of supplies in insurance services, as well as to analyse non-normative sources that may be a basis for the management of chains of insurance services supplies in accordance with the ESC principles. The article also discusses EU legislation proposals concerning sustainable development that have a direct impact on the chains of supplies in insurance sector

THEORETICAL AND APPLIED ASPECTS OF AI IMPLEMENTATION IN FINTECH AS A DRIVER OF SOCIO-ECOLOGICAL-ECONOMIC DEVELOPMENT

Introduction. Financial technologies play a crucial role in socio-ecological-economic development by automating various processes across all sectors and increasing service accessibility not only in large cities but also in every corner of the country. The use of remote customer service channels reduces labor and associated costs, promoting more efficient resource utilization. FinTech supports the growth of financial markets and serves as a vital tool for optimizing both the everyday lives of individuals and the functioning of the entire ecosystem. These technologies significantly facilitate the formation of connections between different sectors, accelerating the attainment of economic, social, technological, political, and other benefits. FinTech not only fosters economic growth but also supports sustainable development by enhancing social inclusiveness and promoting ecological sustainability through more efficient resource use and reduction of the carbon footprint. The purpose of the article. It is necessary to investigate the theoretical and applied understanding of AI in Fintech as a driver of socio-ecological-economic development. Results. Trends in AI, considering sustainable development and financial technologies, highlight the following key directions: Green AI (energy-efficient algorithms; energy consumption optimization); Ethical and Transparent AI (ethical principles; explainability); Inclusive Financial Technologies (financial inclusion; personalized financial services); Innovations in Lending and Risk Management (creditworthiness analysis; risk forecasting); Intelligent Investment Platforms (robo-advisors; micro-investments); Cybersecurity (threat detection; behavior analysis); Sustainable Development through Financial Technologies (investing in sustainable development; impact monitoring). Therefore, it can be argued that the integration of artificial intelligence in financial technologies not only drives innovation in financial services but also upholds the principles of sustainable development, ensuring ethical, inclusive, and efficient practices. Conclusions. Financial technologies are rapidly evolving, stimulating the emergence of diverse services, including internet payments, lending through distributed ledgers, and mobile money transfers. Key directions in the development of financial technologies include fraud protection, business interchanges, and adaptation to regulations, opening up new opportunities for all consumer categories. Transformational trends in fintech innovations significantly impact Ukraine's financial sector, expanding the accessibility of financial services and enhancing the efficiency of financial companies. It is necessary to ensure the creation of appropriate legislative and regulatory environments to guarantee the security and stability of the financial sector in the face of rapid development of digital technologies. The application of artificial intelligence in the financial sector is defined by key directions such as green AI, ethical and transparent AI, fostering innovation and sustainable development, increasing the efficiency and accessibility of financial services.

Does fintech matter for financial inclusion and financial stability in BRICS markets?

We investigate whether fintech development expedites financial inclusion and affects the stability of the financial sector in BRICS economies. We first seek to identify the linkage between Fintech development and financial inclusion in the BRICS economies. We then explore if Fintech poses any threat to financial stability by studying the impact of Fintech on three main factors of financial stability; Country risk, Liquidity, and Price volatility to see any possible threat to financial stability. We apply the robust Global Vector Autoregressive (GVAR) model with Bayesian framework to analyze a monthly dataset ranging from 2015 to 2022. By applying a positive shock to Fintech over financial inclusion and financial stability, we reveal a positive dynamic relationship between fintech development and financial inclusion, with fintech exhibiting a long-term influence on financial inclusion in some BRICS countries than others. However, we found no significant evidence that fintech presents any threat to financial stability; at least not in the short term. We offer several policy implications and future research directions.

Investigation on parasitic infestation of Labeo rohita (Hamilton, 1822) in the south-western region of Bangladesh.

Our investigation focused into Labeo rohita, commonly known as Rui, a freshwateraquatic species in Bangladesh. Despite their nutritional significance, these fish faced a pressing challenge: parasite infections threaten the economic stability of the aquaculture sector. The present study aimed to investigate the parasite and histological changes in major organs of L. rohita, collected fromKhulna region - Dumuria, Paikgacha and Rupsha. About 180 (30/month) specimens were collected between the month of March and August 2023 to observe the parasitic status in L. rohita. Through microscopic examination, a total of 323 parasites were uncovered, spanning categories including Cestode, Nematode, Acanthocephala, Trematode and Digenia, predominantly residing in the intestines of L. rohita. The highest prevalence rate (70%) was recorded in both March and May 2023, with peak mean intensity observed in July (3.73). Notably, the highest mean abundance (2.37) exhibited in July and index of infestation (45.34) in June. Histological analysis confirmed parasitic infestations in the gastrointestinal region, with displaying histological changes within major organs such as the liver, kidney, gills, spleen and testicles due to parasitic infection. This study concluded that the indentified six categories of parasite and the affect of parasitic infestation in major organs of L. rohita within the study period. Urgent efforts to implement effective strategies for controlling the parasite infections in aquaculture to ensure the sustainable production of this invaluable fish species.

Perlindungan Hukum Jasa Keuangan Fintech Dalam Perkembangan Ekonomi Di Indonesia Pada Era Indusri 4.0

The Fintech-based financial services sector in Indonesia shows developments that are in line with regional and global sector dynamics. This development plays an important role in accelerating national economic growth, where the financial services sector functions optimally to maintain the smooth running of the financial system. This system is the foundation for sustainable development, supports community financial independence, and improves the distribution of development. This study uses a normative juridical approach with descriptive analysis. The data was analyzed qualitatively and juridically. The research results show that regulations in the financial services sector are developing rapidly due to demands from regional and global changes. One of the main challenges faced is the ASEAN Banking Integration Framework (ABIF). Legal developments in this sector can be seen in regulatory changes in institutions, services, products, and dispute resolution. Legal reform is still needed to provide a strong legal basis for the financial services sector, especially in civil and banking law. This reform aims to adapt regulations to the latest developments and ensure the stability and reliability of the financial services sector in the future.

Operational Risks Faced by Financial Institutions in the Digital Age: A Case of Nigeria

Purpose: The aim of the study was to examine operational risks faced by financial institutions in the digital age: a case of Nigeria. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study found that financial institutions in Nigeria are confronted with a myriad of operational risks in the digital age, stemming from the rapid adoption of technology and the evolving cyber threat landscape. The shift towards digital banking and fintech innovations has introduced new vulnerabilities, including cyberattacks, data breaches, and fraudulent activities, posing significant challenges to the security and integrity of financial systems in Nigeria. Operational risks associated with technological disruptions, such as system failures, IT outages, and disruptions to digital payment platforms, can undermine the reliability and efficiency of financial services, leading to customer dissatisfaction and financial losses. The proliferation of mobile banking and digital payment channels has heightened concerns about financial inclusion, data privacy, and regulatory compliance, necessitating robust risk management frameworks and regulatory oversight to safeguard the stability and resilience of Nigeria's financial sector. Unique Contribution to Theory, Practice and Policy: Technology Acceptance Model (TAM), Agency Theory & Resource Dependence Theory may be used to anchor future studies on operational risks faced by financial institutions in the digital age: a case of Nigeria. Financial institutions should prioritize the implementation of robust cybersecurity measures, including regular security audits, penetration testing, and employee training programs. By enhancing cybersecurity awareness and preparedness, institutions can mitigate the risk of cyberattacks and data breaches. Regulatory authorities play a crucial role in shaping the regulatory landscape to address operational risks in the Digital Age. Policymakers should collaborate with industry stakeholders to develop robust regulatory frameworks that promote innovation while safeguarding financial stability and consumer protection.

Empirical Study to Evaluate Financial Fitness of Listed Commercial Banks of Pakistan

The main purpose of this research is to find the effect of financial fraud, bank size, liquidity, solvency, and efficiency on the financial performance of selected Pakistani commercial banking sector. This research is conducted for assessing the financial stability of the commercial Banking sector of Pakistan. In this research, the ratio analysis technique is adopted for investigating the financial performance of the Banking Sector for the period 2012 to 2018. This study found that bank size, financial fraud, efficiency, solvency and liquidity have a significant impact on the financial performance of commercial banks in Pakistan. This research suggested that commercial banking zone working in Pakistan should be brought into being place fraud discernment appliance by framing up a well-organized and systematic, well-established, and reliable and operating fraud detection sub-division to supervise all the transactions that are contemplated vulnerable to fraudulent practices to minimization vice for them to maximization of profits for better monetary/financial progress/performance.

Review Paper- “A STUDY ON INTROUDUCTION TO THE BANKING SECTOR IN INDIA”

The banking sector in India plays a pivotal role in the country's economy, acting as a backbone for financial intermediation and economic growth. Over the past decade, the sector has witnessed significant transformation driven by regulatory reforms, technological advancements, and changing consumer preferences. The banking sector in India is a critical component of the country's economy, serving as a catalyst for financial inclusion, economic growth, and development. This abstract provides a concise overview of the key aspects shaping the Indian banking landscape. It highlights the regulatory reforms undertaken by the Reserve Bank of India (RBI) to strengthen the sector's stability and resilience, including the implementation of Basel III norms and the introduction of frameworks like Asset Quality Review (AQR) and prompt corrective action (PCA). The abstract also emphasizes the transformative impact of digital technologies on the banking sector, driving innovation, enhancing customer experience, and expanding access to financial services. Furthermore, it discusses the challenges faced by Indian banks, such as non-performing assets (NPAs) and stressed assets, and the initiatives undertaken to address these issues, including the insolvency and bankruptcy code (IBC). Despite challenges, the abstract underscores the significant growth opportunities in the Indian banking sector, fueled by demographic trends, urbanization, and increasing financial literacy. Overall, the abstract suggests that while the Indian banking sector faces both opportunities and challenges, it remains a dynamic and integral part of the country's economic landscape, poised for continued evolution and growth. Keywords – Banking Regulation, Reserve Bank of India (RBI), Financial Inclusion, Digital Banking, Insolvency and Bankruptcy Code (IBC).

Exploring the development of regulatory framework for crypto assets in South Africa

This paper explores the need for, and forms of regulatory framework and laws established to guide and control the growing number of individuals and firms investing and trading in crypto assets in South Africa. The step taken to regulate crypto assets was necessitated by the 2021 report of the Paris-based intergovernmental organisation referred to as the Financial Action Task Force (FATF) which revealed that there is apparent lack of crypto assets regulation in South Africa. In rising to this challenge, the South African regulatory authority known as the Financial Sector Conduct Authority (FSCA) in October 2022 indicated that crypto assets are digital representation of value and therefore could be categorised as financial product which are to be subjected to FSCA regulations with reference to Section 1(h) of the Financial Advisory and Intermediary Services Act (FAIS). The method adopted was to review the regulatory framework and laws governing crypto assets in South Africa. It was found that relevant regulatory framework and laws are needed to provide adequate protection for the investing public and to provide avenues for the sustainability and stability of the crypto assets business sector. The paper concludes that providing an efficient regulatory framework for crypto assets in South Africa will assist in limiting the risk of volatility and cyber-attacks to which individuals and firms trading and/or investing in crypto assets are exposed to. Moreover, an awareness of various regulatory controls and laws governing investments in crypto assets will ensure that individuals and firms in this sector tread in the path of caution.