South Africa Proposes Stricter Regulations for Cross-Border Crypto Activities

The National Treasury and South African Reserve Bank have released a draft manual for cross-border crypto activities for public comment. The document proposes how South African crypto asset service providers (CASPs) would be authorized to facilitate cross-border transactions under the Capital Flow Management Regulations.

Major industry participants have expressed concern over the proposed treatment of resident companies, non-custodial wallets, and additional authorisation requirements for licensed CASPs.

The draft manual proposes an additional layer of authorisation and reporting for CASPs that facilitate cross-border transactions. Applicants would need to demonstrate they are licensed by the Financial Sector Conduct Authority (FSCA) and registered with the Financial Intelligence Centre (FIC), among other requirements.