A major South African court ruling has clarified how crypto fits into old exchange-control laws, exposing big regulatory gaps.
A South African High Court ruling has found that a major Bitcoin transfer by Leo Cash & Carry did not breach the country’s exchange-control laws. The case involved 4,405 BTC, worth R556 million, moved from South Africa to a Seychelles exchange, prompting the Reserve Bank to issue a forfeiture order.
The central question: is crypto “currency” or “capital” under the 1961 exchange-control regulations? The court said no. It called the Reserve Bank’s argument that crypto is currency “strained and impractical,” noting that crypto isn’t legal tender and exists globally as “codes on a digital ledger.”
The court also ruled crypto cannot be interpreted as “capital,” referencing the Oilwell judgment, which used a restrictive approach to define capital exports.
It set aside the forfeiture order. The Reserve Bank has appealed to the Supreme Court of Appeal, meaning the final position is not yet settled, and regulatory changes may follow.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
