South Africa Publishes Draft Crypto Asset Manual with Cross-Border Requirements
South Africa's National Treasury and Reserve Bank have published a draft Crypto Asset Manual for cross-border activities. The manual is part of the draft Capital Flow Management Regulations, 2026, and aims to introduce new authorisation requirements for crypto asset service providers (CASPs) facilitating cross-border transactions.
The proposed framework distinguishes between domestic and cross-border crypto asset transactions. CASPs wishing to facilitate cross-border transactions would need to be authorised by National Treasury through the Financial Surveillance Department (FinSurv). This involves providing detailed information on ownership, governance, and financial requirements, including maintaining unimpaired capital equal to ZAR5 million or 15% of their average positive annual gross income.
The draft Manual proposes three categories of Authorised CASPs: Category One for specified remittance transactions, Category Two for South African custodial wallets facilitating cross-border crypto asset transactions, and Category Three for conducting both activities. CASPs would face reporting, recordkeeping, and supervisory obligations, including submitting regular financial statements and risk management programs.
The draft Manual introduces a single discretionary allowance of R2 million per individual per calendar year and a foreign capital allowance of up to ZAR10 million per year for qualifying taxpayers. South African entities are restricted from externalising crypto assets under the proposed framework, except for purchasing, holding, and selling through domestic Authorised CASPs.
Interested parties have until close of business on 30 September 2026 to submit written comments in the prescribed format. This is an opportunity for CASPs, fintech businesses, and other participants in the digital asset market to test whether the proposed framework reflects the commercial and technical realities of cross-border crypto activity.