SA Crypto Rules May Drive Business Offshore
VALR CEO Farzam Ehsani warns that proposed crypto exchange control rules may drive businesses, jobs, and tax revenue offshore.
According to Ehsani, at least R2.2 billion in potential foreign investment in South African crypto businesses has been placed on hold due to uncertainty over the new exchange control rules.
The draft manual governing cross-border crypto asset transactions would prohibit South African businesses from using crypto assets or stablecoins for cross-border payments, even where the same transaction would be permitted through a bank or authorized foreign exchange dealer.
Ehsani argues that this discriminates against the technology rather than regulating the underlying activity and its risks. He proposes subjecting crypto asset service providers to the same reporting and surveillance requirements as banks and authorized dealers.