South Africa Proposes Activity-Based Reporting for Cross-Border Crypto Transactions

The South African Reserve Bank (SARB) and the National Treasury have released a draft version of the Crypto Assets Manual for cross-border activities, aiming to fill regulatory gaps in cryptocurrency transactions. The manual proposes an activity-based reporting framework, which would supplement current supervision by SARS, FIC, and FSCA.

The framework does not declare crypto assets as official currency in South Africa and does not distinguish between different types of crypto assets. It focuses on cross-border inflows and outflows, requiring reports to FinSurv when a trigger point is reached, such as when crypto assets move from a domestic authorized CASP to a non-custodial wallet.

Pierre Rochard, former Vice President of Research for Riot Platforms, criticized the proposal, stating it's 'a horrible Bitcoin policy.' The manual aims to better track international crypto flows and reduce unnecessary reporting for purely domestic activity.