South Africa Publishes Draft Regulations for Cross-Border Crypto Transactions

South Africa has taken a significant step towards regulating its crypto industry by publishing draft Capital Flow Management Regulations that include crypto assets for the first time. The move comes after a High Court ruling in 2025 found that crypto assets did not fall under the existing legal definition of capital, leaving them unregulated.

The new regulations aim to bring cross-border crypto transactions under the same oversight regime as traditional financial instruments and foreign currency movements. This means that non-compliance could result in fines of up to R1 million or imprisonment for up to five years.

The draft regulations are open for public comment until June 30, 2026, allowing industry participants, legal experts, and the public to weigh in before the rules are finalized. The country's approach is aligned with global standards, particularly those set by the Financial Action Task Force (FATF).