South Africa Unveils Draft Rules for Cross-Border Crypto Transfers

South Africa's National Treasury and South African Reserve Bank (SARB) have published a draft rule that sets out a regulatory framework for treating cryptocurrency transfers as cross-border financial transactions.

The proposal, which marks a significant shift from the current environment, would require South Africa-based crypto service providers to obtain approval and report transfers of digital assets to offshore exchanges or non-custodial wallets.

This move is part of a broader effort by South African authorities to bring cryptocurrency activities under the same scrutiny as traditional financial transactions, aligning with the Financial Action Task Force (FATF) recommendations on combating money laundering and terrorist financing.