South Africa unveils draft crypto transfer rules

South Africa unveils draft rules for cross-border crypto transfers, requiring reporting and authorized providers to enhance oversight. Public comments accepted until September 30.

South Africa has introduced a draft regulatory framework for cross-border crypto asset transfers, marking the first time these transactions are formally addressed under the nation’s capital flow management system. The draft, released by the National Treasury and the South African Reserve Bank, mandates that crypto transfers from local licensed providers to overseas platforms or non-custodial wallets must be conducted through authorized service providers and reported to the Reserve Bank’s Financial Surveillance Department. Individuals are permitted to transfer crypto assets abroad only within existing foreign exchange limits. Notably, buying or selling crypto with rand through local platforms does not trigger reporting requirements. The proposal aims to prevent the use of crypto assets to bypass foreign exchange controls and to detect illicit fund flows. The draft is open for public comment until September 30.