South Africa Central Bank Defends Use of 1961 Law to Regulate Crypto in Appeal

South Africa’s central bank appeals court ruling that challenged its use of apartheid-era exchange control law to regulate crypto.


The South African Reserve Bank (SARB) is appealing a High Court ruling that criticized its use of a 1961 exchange control regulation to seize crypto assets. The case involves 4,400 BTC transferred by retailer Leo Cash and Carry to Seychelles-based exchange Huobi—an act SARB claims violates capital export laws.

Crypto Not Money? Court Thinks So
Pretoria High Court Judge Mandlenkosi Motha had previously ruled that cryptocurrency is not “money” under current exchange control law and questioned whether 1961-era regulations can govern 21st-century digital assets.

But SARB argues Regulation 22C still gives it authority to block any transaction that exports capital, including those involving crypto.

Industry Reacts
Future Forex CEO Harry Scherzer says SARB’s error effectively enabled unchecked capital flight via crypto. “People could bypass controls by sending crypto abroad. That makes the whole system toothless,” he said.

Still, he welcomed SARB’s quick appeal, saying it reinstates regulatory clarity—at least temporarily.

Why It Matters
The case sets a critical precedent: can legacy financial laws meaningfully regulate decentralized, borderless digital assets? The outcome could reshape crypto oversight in South Africa for years to come.