South Africa Unveils Draft Manual for Cross-Border Crypto Activities

The South African Reserve Bank (SARB) and National Treasury have released a draft version of the Crypto Assets Manual for cross-border activities, aimed at filling regulatory gaps pertaining to crypto transactions. The manual outlines an activity-based reporting framework that would supplement current supervision by the South African Revenue Service (SARS), Financial Intelligence Centre (FIC), and Financial Sector Conduct Authority (FSCA).

The proposed framework focuses on tracking international crypto flows and reducing unnecessary reporting for domestic activities. It will require crypto service providers to report cross-border transactions, including those involving non-custodial wallets or offshore service providers.

South Africa has seen a surge in cryptocurrency adoption, with an estimated 6 million people (9.44% of the population) owning digital assets. The most held asset is Bitcoin (79%), followed by Ripple, Ethereum, and Tether (USDT).