South Africa Publishes Draft Manual for Cross-Border Crypto Regulation

South Africa's National Treasury and South African Reserve Bank (SARB) have published a draft Crypto Assets Manual to regulate cross-border crypto transactions. The move aims to strengthen oversight of digital assets, mitigate risks associated with international capital flows, and prevent regulatory arbitrage.

The proposed guidelines flag any transaction that involves transferring crypto assets between a domestic Authorised Crypto Asset Service Provider (CASP) and an offshore entity as a cross-border transfer. This includes transfers from a domestic CASP to a non-custodial wallet, which will be reported to the Financial Surveillance Department (FinSurv) for monitoring.

Currently, only individuals are permitted to externalise crypto assets through Authorised CASPs under existing frameworks. The SARB has clarified that these proposals do not mean crypto assets are being declared an official currency in South Africa.

The regulation of crypto assets remains a priority area for South African regulators as they attempt to balance financial innovation with national security and economic stability.