South African Reserve Bank Gains Greater Authority Over Crypto Transactions

A recent court ruling in South Africa has given authorities greater powers to scrutinize cryptocurrency transactions, particularly those involving the movement of capital offshore.

The Gauteng Division of the High Court in Johannesburg dismissed an application by fintech company Kastelo to overturn a blocking order on its bank account issued by the South African Reserve Bank (SARB).

The court found that SARB had reasonable grounds to suspect that Kastelo's business model contravened South Africa's exchange-control regulations.

This ruling is significant for crypto businesses in South Africa, as it confirms that existing exchange-control enforcement powers can be applied to crypto-related business models where authorities believe there is a risk of regulatory circumvention.