South Africa Cracks Down on Crypto Cross-Border Flows
The South African government has introduced new proposals to regulate cross-border transactions in cryptocurrencies as part of efforts to strengthen oversight and curb illicit flows. The National Treasury and Reserve Bank have published a draft crypto assets manual, which sets out the application and adjudication process for authorisation to conduct business with these assets.
The move comes after South Africa was removed from the Financial Action Task Force (FATF) greylist in October last year. However, the country remains under review until 2027, with a mutual evaluation currently underway.
The Reserve Bank has repeatedly warned that cryptocurrencies pose a danger to the stability of South Africa's financial system and their limited regulation could allow risks to build up undetected.