South Africa Drafts Crypto Cross-Border Transfer Rules
South Africa's National Treasury and the South African Reserve Bank (SARB) have published a draft rule for treating cryptocurrency transfers as cross-border financial transactions. The proposal would require South African-based crypto service providers to obtain approval and report transfers of digital assets to offshore exchanges or non-custodial wallets.
The draft rule, open for public comment, aims to close regulatory gaps and align with the Financial Action Task Force (FATF) recommendations on combating money laundering and terrorist financing. This marks a significant shift from the current environment, where such transfers are not explicitly regulated under the country's exchange control framework.
South Africa has been tightening its cryptocurrency oversight in recent years. In 2021, the Financial Sector Conduct Authority (FSCA) declared crypto assets as financial products, bringing them under its regulatory remit. The latest proposal extends this regulatory reach to cross-border flows, addressing a gap that has concerned regulators for years.