Crypto Firms Clash with South African Regulators Over Cross-Border Payments
A bitter dispute is unfolding in South Africa over cross-border payments, pitting crypto firms and a major digital bank against the National Treasury and the South African Reserve Bank (SARB).
The coalition of crypto companies, now joined by GoTyme Bank, argues that proposed draft rules are too restrictive. The rules would require all cross-border crypto transfers to be routed through authorized dealers and reported to SARB's Financial Surveillance Department.
Crypto firms warn that the restrictions could drive transactions underground or offshore. VALR CEO Farzam Ehsani estimates that $134 million in potential foreign investment has been put on hold due to the uncertainty.
The banks are not united in opposition, with Absa seeing the rules as overdue clarity, while GoTyme Bank breaks ranks to back the crypto industry.