SA Crypto Deals Halted Amid Proposed Regulations
South Africa's proposed regulations on cryptocurrencies have stalled billions of rand in deals. At least three transactions, valued at R2.2 billion, are on hold due to the suggested legislation changes.
The rules would include cryptocurrencies under the country's exchange-control regime and limit their use in cross-border transactions. Digital-asset companies operating in South Africa have halted these deals because of the proposed regulations.
The transactions include an investment from a private equity firm, as well as others that would promote capital formation for small businesses and help with corporate treasury management.
The government first published the proposals in April with a call for comment. While it released a detailed draft manual for cross-border transactions last month, it hasn’t yet taken input from interested parties into account due to the release timing and volume of comments received.