South Africa puts crypto under foreign exchange controls, pausing investments of more than 2 billion rand
I saw a post: South Africa plans to directly bring crypto assets into its foreign exchange control framework, and even in the draft it wants to limit companies from making cross-border stablecoin transfers. In plain terms, from now on, any such cross-border actions will have to clear an extra hurdle of foreign exchange rules first.
The impact is already here—local exchange VALR says that investments of about more than 2 billion rand have been put on hold specifically because of these proposed rules. Luno and VALR have both publicly warned that if things are regulated this way, business, jobs, and even tax revenue could end up being pushed overseas.
My take is that in many emerging markets, attitudes toward crypto are shifting from “whether to regulate” to “how to regulate it using the existing old tools.” Foreign exchange controls are a heavy-handed force. Once they’re put on, crypto’s “easy cross-border move at the drop of a hat” attribute is essentially taken away by half.
For local exchanges and companies doing cross-border business, this is probably the hardest kind of regulation to deal with: it doesn’t outright ban you—it makes every step slower and more expensive.
Question for you: If emerging markets use foreign exchange controls to manage crypto, do you think it’s a necessary line of defense—or will it instead push users toward gray channels that are even harder to regulate? 🧊
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#南非拟将加密纳入外汇管制
I saw a post: South Africa plans to directly bring crypto assets into its foreign exchange control framework, and even in the draft it wants to limit companies from making cross-border stablecoin transfers. In plain terms, from now on, any such cross-border actions will have to clear an extra hurdle of foreign exchange rules first.
The impact is already here—local exchange VALR says that investments of about more than 2 billion rand have been put on hold specifically because of these proposed rules. Luno and VALR have both publicly warned that if things are regulated this way, business, jobs, and even tax revenue could end up being pushed overseas.
My take is that in many emerging markets, attitudes toward crypto are shifting from “whether to regulate” to “how to regulate it using the existing old tools.” Foreign exchange controls are a heavy-handed force. Once they’re put on, crypto’s “easy cross-border move at the drop of a hat” attribute is essentially taken away by half.
For local exchanges and companies doing cross-border business, this is probably the hardest kind of regulation to deal with: it doesn’t outright ban you—it makes every step slower and more expensive.
Question for you: If emerging markets use foreign exchange controls to manage crypto, do you think it’s a necessary line of defense—or will it instead push users toward gray channels that are even harder to regulate? 🧊
👉 关注我，点击进入聊天室，学习更多策略
#南非拟将加密纳入外汇管制
