South African Courts' Divergent Rulings Leave Bitcoin Investors in Regulatory Limbo

The South African High Court's decisions on Bitcoin and cryptocurrency transfers have created regulatory whiplash for investors.

In May 2025, the Gauteng High Court in Pretoria ruled that cryptocurrency transfers did not fall under exchange control regulations, citing a restrictive interpretation due to possible criminal penalties. However, this decision was short-lived as it was appealed, leaving its impact technically ineffective while the appeal process continues.

Just over a year later, on June 1, 2026, the Johannesburg High Court delivered a contrasting ruling in Square Mangundhla v South African Reserve Bank. The court examined a case involving approximately R182 million in Bitcoin transferred out of the country and ruled that Bitcoin qualifies as both money and capital under exchange control law.

The conflicting verdicts have left crypto users and investors facing legal uncertainty, with some potentially exposed to compliance violations. The new Capital Flow Management Regulations, currently in draft form, aim to clarify the regulatory status of cryptocurrencies by explicitly defining them as capital subject to regulations.