Treasury moves to bring crypto under exchange-control rules

is south africa Tightening the regulatory net around crypto – this time targeting cross-border capital flows.

In an effort to safeguard the financial system while encouraging legitimate investment and capital flows, National Treasury will soon publish amendments to exchange control rules under the Currency and Exchange Act, Finance Minister Enoch Godongwana said in his budget speech on Wednesday.

According to the Budget, the amendments are aimed at including crypto assets in the capital flow management framework to complement regulation by the Financial Sector Conduct Authority, which has officially declared crypto assets – such as Bitcoin and Ethereum – as “financial products” under the Financial Advisers and Intermediaries Services Act.

“Similar regulatory action has been taken Financial Intelligence Center“which designates crypto asset service providers as accountable institutions subject to supervision, including reporting, registration and enforcement in 2025,” the budget said.

Crypto adoption continues to grow in South Africa, which is reflected in both the number of users registered on major trading platforms and the value of crypto assets held in custody.

In its Financial Stability Review For 2025, the South African Reserve Bank identified cryptocurrencies as a new risk to domestic fiscal stability.

Techcentral informed Nicola Brink, head of the Department of Financial Stability at the Reserve Bank at the time, said that new technologies can be both good and bad, but that they present risks that require monitoring and mitigation.

R63-billion

Brink said, “Crypto adoption is growing in South Africa, both in terms of the number of registered users and the value of crypto assets in custody. One of the key transmission mechanisms through which crypto assets can impact financial stability is through their use in payments and settlements. Additionally, since crypto payments are borderless, they offer a way to avoid exchange controls.”

Analysis by the Reserve Bank shows that since January 1, 2019, approximately R63-billion has been moved from Bitcoin wallets originating in South Africa to wallets abroad. Brink said that number becomes larger when smaller cryptocurrencies are included.

Reading: Cardware wallet aims to 'hide the blockchain' to boost mass crypto adoption

To curb illicit international flows, the National Treasury and the Reserve Bank are working on a framework to monitor cross-border transactions conducted using crypto.

christo de vitThe country manager of Luno South Africa told TechCentral that the new rules were expected after the High Court in Pretoria ruled last year that crypto assets were not “currency” or “capital” under South Africa’s 1961 Exchange Control Regulation. This means that crypto transfers offshore were not initially considered to require Reserve Bank approval. This decision is in practice suspended as it is being appealed by the Bank.

De Wit said that as digital assets become more mainstream and increasingly integrated with traditional finance, including being sent across borders, regulation will need to modernize and keep pace with their inevitable adoption.

Because crypto assets are neither clearly designated as onshore nor offshore assets, this lack of clarity creates uncertainty for financial advisors and investors allocating capital investments in digital assets such as Bitcoin, as offshore assets are subject to capital allocation limits.

Luno has proposed that cryptos should be designated as onshore assets when traded through licensed South African crypto asset service providers (Casps). This will mean that investors will not be subject to offshore investment limits when investing locally.

Designating crypto as an onshore asset could encourage more domestic investment in digital assets, progress discussions on the listing of locally traded crypto exchange-traded products and increase tax revenues for the fiscus.

Asked if Luno expects any operational, reporting or cost implications, De Wit said the company doesn't expect anything “major” for customers.

“If the Reserve Bank provides clarity on the onshore or offshore status of crypto assets, Casps will report on behalf of users, just as traditional financial institutions do. “Crypto assets will be subject to exchange control restrictions that limit how much money a firm or individual can send out of the country per year and how money leaving the country is reported to authorities,” he said.

stable coins

Luno has urged the Reserve Bank to implement or modify its cross-border reporting framework to allow reporting of cross-border inflows and outflows of crypto assets, including stable coins. Crypto assets like stable coins are being used to promote cross-border payments globally due to their universal nature, low costs, and significantly faster processing times.

Meanwhile, at the Financial Intelligence Center, which was Set up to combat money laundering and financing of terrorist and related activities, the budget said the center will focus on 10 sectors of designated non-financial businesses or professions. It will do this by adopting a risk-based supervisory approach to identify high-risk entities, including designated non-financial businesses or professions, crypto asset service providers, credit providers the South African Mint and South African Postbank.

Treasury has also announced that in an effort to promote South Africa as a competitive financial and investment center in Africa, it will extend the holdco (holding company) concept to corporations. This will allow asset managers to manage their portfolios in foreign currencies locally as corporations are allowed to do.

Reforms would enable the creation of a “synthetic financial centre” A digital, borderless ecosystem where financial activities (trading, lending, asset management) occur through smart contracts and derivatives, mimicking traditional, geography-based hubs.

It will engage in two main activities – managing a portfolio of foreign assets, and trading foreign currency denominated financial instruments.

Reading: An inflection point for crypto in South Africa

It said this would enable asset managers to intermediate global capital flows, particularly those invested in Africa, and to attract and manage the foreign savings of South African investors. – © 2026 NewsCentral Media