South Africa Proposes Rules for Cross-Border Crypto Transfers

South Africa's National Treasury and Reserve Bank have released a draft of new rules for cross-border cryptocurrency transfers. The proposal would require such transactions to pass through authorized providers and be reported to the central bank, building on earlier plans to bring digital assets under the country's foreign exchange control framework.

The draft Crypto Asset Manual defines when crypto transfers become regulated cross-border events and explains how they must be handled. According to the manual, moving cryptocurrency offshore will only qualify as a cross-border transaction in specific situations, such as transferring from a locally authorized provider to an offshore one or into a privately controlled wallet.

Individuals would be allowed to move crypto assets abroad only within South Africa's existing foreign currency allowances. The proposal aims to stop crypto assets from being used to bypass the country's financial controls while helping authorities identify illicit financial flows, with reporting required for transactions handled through authorized service providers.