South Africa will revise proposed regulations governing cross-border cryptocurrency transactions after receiving thousands of public comments, Finance Minister, Enoch Godongwana, said.
In mid-2026, the National Treasury and the South African Reserve Bank (SARB) invited interested parties to submit written comments on the draft Crypto Assets Manual for cross-border activities (draft Manual).
PRESS RELEASE | National Treasury, South African Reserve Bank Invite Comments on the Crypto Assets Manual for Cross-Border Activities Draft
The draft rules, developed by the National Treasury and South African Reserve Bank, sought to bring crypto transfers under the country’s exchange-control framework to improve oversight of capital flows and combat illicit financial activity.
However, the proposals drew criticism from crypto businesses over restrictions on cross-border payments, stablecoin transactions, and transfers to self-custody wallets, raising concerns that the rules could limit legitimate activity and push transactions into unregulated channels.
CATASTROPHE (Crypto Asset Taskforce for Advancing Sound, Technology-Neutral Regulation for Opportunity, Prosperity and a Healthy Economy) launched a national campaign to highlight the unintended adverse consequences for South Africa if newly proposed cross-border regulations become law.
In a press release published by BitKE, the coalition said it brings together many leading regulated Crypto Asset Service Providers (CASPs) and other organisations, including VALR, Luno, AltCoinTrader, and EasyEquities, as well as professors, lawyers, economists, entrepreneurs, and many other members of the public.
CATASTROPHE claims that restrictive draft rules will harm domestic enterprises and jobs, slow economic participation, and isolate South Africa from the global digital economy.
PRESS RELEASE | The CATASTROPHE Coalition of South Africa Demands No Restrictions on Cross-Border Crypto Payments by Businesses
“We must aim to shift away from pre-approvals. Instead, we must assess transactions for legitimacy and tax compliance,” Godongwana said in his October 2026 budget statement.
“The treatment of crypto assets should also be guided by the recommendations from the Financial Stability Board.”
The stated goal of the new rules was to provent financial crime and capital flight via blockchain. However, according to critics, the overly restrictive nature of the regulations would have had the opposite effect of what was intended and would have harmed legitimate users.
EXPERT OPINION | Oversight Should Focus Where it Matters Most, Says MoneyBadger on the South Africa Capital Flow Management Draft Regulations
The government will begin consultations on a revised second draft of the regulations with the treatment of crypto assets also guided by recommendations from the Financial Stability Board.
INSIGHTS | Why South Africa is Re-Writing Decades-Old Money Rules
Stay tuned to BitKE for updates into crypto regulation in Africa.
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