South Africa’s National Treasury and the South African Reserve Bank (SARB) released a draft Crypto Asset Manual on 3 August 2026 that proposes barring resident companies from transacting cryptocurrency across the country’s borders, drawing sharp criticism from the country’s largest crypto exchanges. The public has until 30 September 2026 to submit written comments on the draft, which forms part of broader draft Capital Flow Management Regulations gazetted on 17 April 2026 to replace the Exchange Control Regulations of 1961.
Under the proposal, individuals may still send crypto abroad through licensed local providers under existing allowances: up to R2 million annually without pre-clearance, up to R10 million with South African Revenue Service clearance, and everyday cross-border remittances capped at R5,000. The draft manual also blocks incoming payments from private non-custodial wallets to local exchanges and treats outgoing transfers as offshore capital movements.
VALR CEO Farzam Ehsani, speaking to TechCentral, said the proposed framework would undermine its own objectives.
By prohibiting legitimate corporate activity through regulated providers, the proposed framework is likely to drive transactions underground or offshore, reducing the very visibility and surveillance that treasury and the Reserve Bank seek to achieve.
Ehsani added that blocking non-custodial wallet transfers to local exchanges would push users toward offshore platforms.
This is neither practical nor sensible. It would effectively encourage South Africans using self-custodial wallets to transact through offshore exchanges rather than regulated local CASPs — a perverse outcome for a regulatory framework that seeks to do exactly the opposite.
Luno went further, arguing in July 2026 that executive branch changes to the 65-year-old exchange control framework may be unconstitutional and require parliamentary input, as reported by News24. Luno’s General Manager for Africa and Europe, Marius Rietz, told Semafor that failing to accommodate corporate cross-border stablecoin transfers leaves South African businesses out of step with the international ecosystem.
Not all industry voices oppose the framework entirely. Absa’s digital assets head, Rob Downes, told Semafor that bringing crypto platforms under exchange control rules creates regulatory clarity, though he acknowledged it may limit immediate corporate opportunities.
National Treasury and the SARB said in a joint statement that the draft regulations remain subject to refinement.
The draft Regulations and draft Manual remain subject to refinement following the consideration of all public comments and stakeholder engagements.
Daily Maverick published analysis on 4 August 2026 highlighting significant remaining concerns in the draft manual, adding to a growing chorus of pushback from industry participants. The original report by TechCentral referenced a coalition leading public revolt against the draft, though the documented opposition so far has come from individual companies and executives rather than a formal organised coalition.
The clash underscores a broader tension between borderless digital financial technologies and traditional state-level capital controls, a challenge regulators worldwide are grappling with as cryptocurrency adoption accelerates. For South African businesses and investors, the outcome will determine whether they can participate in global crypto markets through regulated local channels or are forced offshore.
Written public comments close on 30 September 2026. Cape Flats News journalist Nadia Daniels will follow up on industry submissions and any Treasury response after the deadline.