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