By April 30, 2025, South Africa’s Directive 9 will enforce stricter crypto regulations, requiring Crypto Asset Service Providers (CASPs) to track and report transactions. The key change is the “travel rule,” which mandates that client details (name, ID, address, and wallet info) accompany transactions over R5,000, impacting domestic and cross-border transfers.
Why CASPs Must Act Now
Legal Obligation: CASPs were classified as financial institutions in 2022 and must now comply with FICA regulations.
Risk of Penalties: Non-compliance could lead to fines, reputational damage, and even regulatory action.
Security Measures Needed: CASPs must enhance identity verification, conduct real-time transaction monitoring, and maintain detailed records to detect illicit activities.
Privacy Concerns & Conflicts with POPIA
Some worry the travel rule could conflict with South Africa’s POPIA law, which limits the transfer of personal data internationally. Since crypto is global, CASPs may be forced to share user data with entities in countries lacking strong privacy laws.
How CASPs Can Stay Compliant
• Use AI-powered verification tools to screen clients.
• Monitor transactions for unusual patterns.
• Adopt automated compliance platforms like VOCA, which integrates FICA, AML, and FATF requirements for seamless reporting.
“Regulation is no longer optional—CASPs must act now or face serious consequences.”
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