South African Coalition Warns Proposed Cross-Border Regulations Would Cripple Economy
A coalition of South African crypto and fintech companies, CATASTROPHE (Crypto Asset Taskforce for Advancing Sound, Technology-Neutral Regulation for Opportunity, Prosperity and a Healthy Economy), has launched a campaign to highlight the negative consequences of proposed cross-border regulations.
The draft rules, published by the National Treasury and South African Reserve Bank, would block businesses from using regulated crypto rails for international transactions and restrict individual self-custody of assets. CATASTROPHE warns that these restrictions would harm domestic companies, slow economic growth, and isolate South Africa from the global digital economy.
The coalition cites two major issues with the proposed regulations: blocking cross-border payments by businesses and restricting individual self-custody of assets. According to CATASTROPHE, thousands of jobs in South Africa would be threatened if these draft regulations are implemented as currently drafted.