South Africa's Crypto Regulations Risk Driving Capital Offshore

VALR's co-founder and CEO Farzam Ehsani is warning that South Africa's proposed cross-border crypto regulations could severely harm the local digital asset sector, stifle innovation, and drive capital offshore.

The National Treasury and SARB have released a draft manual governing cross-border crypto transfers. According to Ehsani, banning corporate crypto flows could push market volume offshore.

Ehsani argues that attempting to apply decades-old capital controls to modern technology threatens employment, local investment, and business innovation. He believes the proposals remain prejudicial to licensed local operators.

Under the draft rules, individual residents are permitted to transfer crypto offshore within existing foreign currency allowances. However, corporate entities from conducting cross-border crypto transactions are restricted.