South Africa is moving to close regulatory gaps around crypto-linked capital flows and exchange control oversight.
The National Treasury South Africa will amend exchange control regulations under the Currency and Exchanges Act to formally incorporate crypto assets into the capital flow management framework. The move complements earlier action by the Financial Sector Conduct Authority, which classified crypto assets as financial products.
The South African Reserve Bank has flagged crypto as a financial stability risk, revealing that nearly R63 billion in bitcoin has flowed offshore since 2019. Authorities warn that borderless crypto payments can bypass exchange controls.
The Financial Intelligence Centre South Africa has already designated crypto asset service providers as accountable institutions. Government is also reviewing proposals to classify locally traded crypto as onshore assets, a move that could encourage domestic investment while tightening oversight of cross-border transactions.
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