South Africa Plans to Tackle Crypto with New Regulations: Finally Some Rules!

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South African Finance Minister Enoch Godongwana has announced plans to end the country’s crypto regulatory vacuum by drafting new rules to integrate digital assets into the national capital flow management regime.

Closing the Regulatory Vacuum

In a move that can only be described as “better late than never,” South African Finance Minister Enoch Godongwana has decided to tackle the long-standing regulatory void surrounding digital assets. His big announcement? The National Treasury’s grand plan to introduce draft regulations that will bring cryptocurrencies into the country’s capital flow management regime.

The announcement came during Godongwana’s February 25 budget speech, where he detailed the grand vision to integrate crypto assets into the national cross-border capital movement framework. According to the minister, these fresh rules, part of the Currency and Exchanges Act, are set to “complement” existing anti-money laundering and fraud prevention measures. A bold step, but one can’t help but wonder-did it take this long because no one had any idea what to do with crypto until now?

The government’s regulatory delay follows a historic 2025 High Court ruling in Pretoria, which threw a wrench into the South African Reserve Bank’s (SARB) old-school approach. In the case of Standard Bank v SARB, Judge Mandlenkosi Motha ruled that the 1961 exchange control laws didn’t apply to cryptocurrencies-something that’s been around for over 15 years. So, the crypto world was left in the clear, enjoying freedom from the weighty old laws, while the government scrambled to catch up.

The SARB, predictably, wasn’t thrilled about the ruling, and has since appealed the decision to the Supreme Court of Appeal, with a hearing expected in 2026. Apparently, the central bank believes that the rules from 1961 still make sense for today’s tech-savvy financial environment. Spoiler alert: they don’t.

In response to the High Court’s sharp critique, Godongwana made it clear that the government wasn’t interested in offering crypto any “special exemptions.” Instead, the South African Reserve Bank (SARB) is set to roll out a comprehensive framework outlining all the parameters, administrative responsibilities, and reporting requirements for any cross-border crypto transactions. No more playing fast and loose, apparently.

But wait, there’s more! The SARB’s appeal has garnered some well-deserved criticism for attempting to “have their bread buttered on both sides.” While the SARB has historically avoided referring to crypto as “currency,” preferring the more ambiguous terms like crypto assets or cyber tokens, they now want to regulate it like a traditional currency. Make up your mind, SARB!

Meanwhile, the South African Revenue Service (SARS) is eager to tax crypto gains at the highest possible rates, claiming they should be treated like regular income. All this while the SARB fights for the privilege of regulating it under the same stringent rules as foreign legal tender. It’s a real spectacle, to say the least.

FAQ ❓

  • What is the South African government’s new plan for cryptocurrency? The National Treasury is drafting new regulations under the Currency and Exchanges Act to officially include crypto assets in the country’s capital flow management regime.
  • Why is the South African Reserve Bank (SARB) introducing these rules now? Well, after a 2025 High Court ruling declared that 60-year-old exchange control laws don’t apply to digital assets, the government was left in a bit of a regulatory mess. Better late than never, right?
  • How will the new framework impact cross-border crypto transactions? The SARB is set to publish administrative and reporting requirements to ensure that all international crypto movements comply with the country’s anti-money laundering standards. Yes, you’ll have to play by the rules now.
  • What is the current legal status of crypto exchange controls in South Africa? Although the High Court ruled against existing controls, the decision is still suspended pending the SARB’s appeal to the Supreme Court of Appeal in 2026. Stay tuned for more twists!

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2026-02-26 08:57