South Africa Tightens Crypto Regulations Amid Illicit Flow Concerns

The South African Treasury and Reserve Bank have introduced new proposals to regulate cross-border transactions in cryptocurrency. The move aims to strengthen oversight of financial activities and curb emerging risks associated with virtual assets.

This comes as South Africa seeks to demonstrate its ability to prosecute and stop illicit financial flows after exiting the Financial Action Task Force (FATF) greylist in October last year.

The Reserve Bank has repeatedly warned that cryptocurrency poses a danger to the stability of South Africa's financial system due to its rapid growth and limited regulation.