The South African legal framework's response to the prevalence of cybercrime in electronic commerce

Abstract

At present, cryptocurrency is not centrally regulated in South Africa. The study aims to determine the extent and capacity of the South African legal framework to regulate and protect all parties to electronic commerce from the dangers that stem from cryptocurrency-related fraud. The research is specifically aimed at determining whether e-commerce and cybercrime legislation may provide a basis for cryptocurrency regulation. This is because, where cryptocurrency is unlawfully employed either as the target of illicit activity or as a means to a further end (such as money laundering), cybercrime legislation automatically applies. This is due to the fact that cybercrime is defined as the unlawful access, interception or alteration of data. The broad definition leaves scope for any sort of fraudulent cyber activity to fall within the boundaries of cybercrime. The research seeks to determine whether a comprehensive cryptocurrency regulatory structure can be formed from the pre-existing e-commerce legal framework and, if so, what minor amendments can be made to successfully account for cryptocurrency under this legal framework. To complete the research, a full examination of the concepts forming part of e-commerce is required, followed by the cybercrime implications of e-commerce. After that, the correlation between cybercrime and cryptocurrency must be examined. This is to be followed by the international and foreign law positions on cryptocurrency. Finally, the current South African legal framework is examined, followed by possible recommendations. After a thorough examination of all the above concepts, the study found that the applicable e-commerce and cybercrime legal framework does provide a basis for the regulation of cryptocurrency. Minor legislative amendments can provide a complete overhaul of the South African position on cryptocurrency, thereby creating a regulatory framework for cryptocurrency.