#SouthAfricaProposesCryptoExchangeControls
South Africa is reviving a 1961-era apartheid-era law: crypto assets/currencies have just been pulled into it 🇿🇦🔒
The National Treasury published a draft set of regulations for managing capital flows on April 17, finally to replace the 1961 Exchange Control Regulations. And perhaps sitting down with history here is worth it: the original system was built to defend the rand against capital flight after the Sharpeville massacre, and during the apartheid years it was used to control who was allowed to move money and where. Now cryptocurrencies are being written into the system itself entirely. 😂
Here’s what the draft actually demands 🧠
All crypto assets leaving South Africa must go through a licensed local provider. Holders must submit written declarations of their holdings within 30 days. Every transaction needs a specific purpose, and using crypto outside that purpose could lead to forced sale. In confiscation scenarios, holders may be compelled to hand over private keys so the state can take control of self-custodied assets. Penalties can reach five years in prison. Even the Treasury can’t agree with itself on the comment deadline: one document says May 18, another says June 10. 💎
Please follow up
$BTC $ETH
South Africa is reviving a 1961-era apartheid-era law: crypto assets/currencies have just been pulled into it 🇿🇦🔒
The National Treasury published a draft set of regulations for managing capital flows on April 17, finally to replace the 1961 Exchange Control Regulations. And perhaps sitting down with history here is worth it: the original system was built to defend the rand against capital flight after the Sharpeville massacre, and during the apartheid years it was used to control who was allowed to move money and where. Now cryptocurrencies are being written into the system itself entirely. 😂
Here’s what the draft actually demands 🧠
All crypto assets leaving South Africa must go through a licensed local provider. Holders must submit written declarations of their holdings within 30 days. Every transaction needs a specific purpose, and using crypto outside that purpose could lead to forced sale. In confiscation scenarios, holders may be compelled to hand over private keys so the state can take control of self-custodied assets. Penalties can reach five years in prison. Even the Treasury can’t agree with itself on the comment deadline: one document says May 18, another says June 10. 💎
Please follow up
$BTC $ETH
