A South African judge rebukes the central bank for using outdated apartheid-era laws to control modern cryptocurrency transactions.
A South African High Court judge has criticized the South African Reserve Bank (SARB) for using 1961 apartheid-era exchange control regulations to govern cryptocurrency transactions.
Judge Mandlenkosi Motha questioned why SARB still relies on laws crafted to prevent capital flight during apartheid, saying such outdated legislation is ill-suited to manage digital assets.
“Cryptocurrency has existed for over 15 years; SARB can’t claim ignorance,” Motha said. He urged lawmakers to create dedicated legislation for cryptocurrencies, much like intellectual property rights found their space in financial law.
The Case: SARB vs. Standard Bank
The ruling arose from a dispute between Standard Bank and SARB. The bank attempted to recover $2.28 million (41 million rand) from a client through liquidation. However, SARB’s financial surveillance division (Finsurv) blocked the move, citing the client’s violation of exchange control laws for purchasing bitcoin and moving funds offshore.
Standard Bank countered, arguing that the Exchange Control Act doesn’t apply to cryptocurrencies, making SARB’s asset seizure legally questionable.
Crypto Isn’t Money, Says the Judge
Judge Motha also dismissed the notion that cryptocurrency qualifies as “money” under the current legal definition, calling that interpretation “strained and impractical.”
“Cryptocurrency is not money,” he ruled, challenging SARB’s basis for applying foreign currency regulations to crypto assets.
The case highlights the urgent need for South Africa to modernize its crypto regulations—moving away from outdated frameworks toward tailored, future-facing policies.
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