South Africa Seeks Public Input on Cross-Border Crypto Rules

National Treasury and the SARB said comments already received on the draft Capital Flow Management Regulations are still under review.

South Africa's National Treasury and the South African Reserve Bank (SARB) have invited public comments on a draft Crypto Assets Manual that outlines how cross-border crypto asset transactions will be regulated. The proposed framework forms part of broader efforts to strengthen oversight of international financial flows, improve transparency and reduce the risks associated with digital assets moving across national borders.

Draft Manual Builds on New Financial Rules

The draft Manual has been released alongside the proposed Capital Flow Management Regulations 2026, which were published earlier this year for public consultation. Authorities said the two documents should be read together because they are designed to create a consistent regulatory framework for cross-border financial activities involving crypto assets.

National Treasury and the SARB said the measures are intended to reduce opportunities for regulatory arbitrage, strengthen the Financial Surveillance Department's ability to detect illicit financial flows and complement existing oversight already provided by the Financial Sector Conduct Authority, the Financial Intelligence Centre and the South African Revenue Service.

Clear Rules for Cross-Border Crypto Transfers

The draft Manual explains when a crypto transaction will be regarded as cross-border under the proposed regulations. A transaction will fall within this category when crypto assets move between a domestic Authorised Crypto Asset Service Provider (CASP) and an offshore CASP, or when they are transferred from a domestic Authorised CASP to a non-custodial wallet, creating either an inflow or outflow that must be reported to the Financial Surveillance Department.

Under the current proposal, only individuals will be allowed to transfer crypto assets abroad through authorised service providers using their Single Discretionary Allowance or Foreign Capital Allowance. Officials said clearly defining the trigger point for reporting will help authorities consistently identify and monitor cross-border crypto transactions.

Activity-Based Approach to Crypto Regulation

The SARB said its proposed framework follows an activity-based approach developed through research, testing and risk assessments. At this stage, the proposal does not distinguish between different categories of crypto assets, nor does it recognise cryptocurrencies as official legal tender in South Africa.

The draft Manual also provides guidance on applying for authorisation as a Crypto Asset Service Provider, the conditions governing cross-border crypto transactions, administrative responsibilities and reporting obligations for authorised providers.

Public Consultation to Shape Final Framework

National Treasury and the SARB said comments already received on the draft Capital Flow Management Regulations are still under review. Since the draft Manual was released later, it has not yet incorporated those earlier submissions, meaning both documents may be revised after the full consultation process is completed.

The central bank added that research into digital assets is continuing and future updates to the framework will reflect both domestic developments and international regulatory trends as South Africa continues to refine its approach to crypto asset oversight.