South African Crypto Coalition Warns Proposed Regulations Threaten Jobs, Economic Participation
A coalition of crypto service providers and experts in South Africa has warned that proposed regulations could harm domestic enterprises, jobs, and economic participation.
The Crypto Asset Taskforce for Advancing Sound, Technology-Neutral Regulation for Opportunity, Prosperity and a Healthy Economy (CATASTROPHE) is urging National Treasury and the South African Reserve Bank to reconsider the draft rules.
CATASTROPHE was formed in recent weeks and comprises prominent crypto asset service providers such as VALR, Luno, AltCoinTrader, and EasyEquities, alongside professors, lawyers, economists, entrepreneurs, and other public members.
The proposed Draft Capital Flow Management Regulations introduce two significant restrictions that would severely limit local businesses' ability to compete globally and hinder their growth potential. Individuals would also be unable to transfer crypto assets back to a regulated South African platform from self-hosted wallets, creating an 'arbitrary one-way door'.