South Africa Cracks Down on Cross-Border Crypto Transfers with New Draft Rules

South Africa has released draft rules to regulate cross-border cryptocurrency transactions.

The proposed framework, which aims to strengthen regulators' ability to monitor illicit financial flows, will make reportable any transaction involving offshore Crypto Asset Service Providers (CASPs) and self-custody wallets.

Only individuals will be permitted to externalize crypto assets through authorized CASPs using South Africa's existing Single Discretionary Allowance or Foreign Capital Allowance.

The draft manual distinguishes between domestic and international crypto activity, with reporting obligations applying once assets leave South Africa through a licensed CASP or are transferred to a self-custody wallet outside the domestic framework.