R22 Billion in Crypto Deals Stalled by South Africa's Exchange Control Rules

South Africa's proposed exchange control rules have stalled at least R2.2 billion in crypto deals, according to people familiar with the matter.

The National Treasury first published its framework in April as part of an overhaul of the country's capital flow management regime.

The draft would formally classify crypto assets as capital under South Africa's foreign exchange rules and extend declaration, approval, and enforcement powers to digital asset transactions.

Industry participants have warned that the proposed framework could push some legitimate digital asset activity offshore or into informal channels. Executives are considering legal action if the rules are adopted without significant changes.