The National Treasury and the South African Reserve Bank (SARB) have released a draft Crypto Asset Manual that proposes to prohibit South African companies from conducting cross-border transfers using cryptocurrency. While the draft framework allows individuals to continue moving crypto assets offshore within existing foreign exchange allowances, it introduces significant restrictions on corporate activities.
Concerns Over Regulatory Visibility And Compliance
Farzam Ehsani, CEO of cryptocurrency exchange VALR, has publicly challenged the proposal, warning that it may inadvertently undermine the regulator’s oversight goals. He argued that preventing legitimate corporate entities from using regulated platforms for cross-border transactions will likely push these activities into opaque channels.
By prohibiting legitimate corporate activity through regulated providers, the proposed framework is likely to drive transactions underground or offshore.
Ehsani further noted that stablecoins and other digital assets often provide a faster, more cost-effective method for international payments compared to traditional banking channels. He emphasised that these transactions remain capable of full transparency and reporting when conducted through authorised providers.
Consultation Process And Regulatory Modernisation
The draft manual forms part of the government’s wider consultation on the Capital Flow Management Regulations, which seeks to modernise the country’s 1961 exchange control regime. This initiative intends to replace outdated legislation with a risk-based approach to managing how capital moves into and out of South Africa.
Public engagement is currently underway, with the National Treasury and the SARB inviting submissions from industry stakeholders and the public. Interested parties have until 30 September 2026 to provide their feedback on the draft manual before the authorities finalise the new regulatory framework.