South Africa's Crypto Industry at Risk of Being Crippled by Proposed Regulations

South Africa's crypto industry is at risk of being crippled by proposed new exchange-control rules, according to MoneyBadger CEO Carel van Wyk. The regulations could undermine self-custody and push transactions offshore.

The current proposals would bring cross-border crypto transfers under the exchange-control system, requiring them to pass through authorized providers and be reported to the South African Reserve Bank (Sarb).

This is on top of existing licensing requirements for South African crypto asset service providers by the Financial Sector Conduct Authority, including customer identification and suspicious transaction reporting.

Van Wyk acknowledges that regulatory clarity is needed but questions whether the proposed rules achieve this. He points to an asymmetry in the regulations, where users may be allowed to transfer crypto from a local exchange to a private wallet but not directly back.