South Africa's Crypto Rules Pause $135M in Deals

South Africa's proposed regulations on cryptocurrencies have led to at least three deals worth $135 million being put on hold, according to Bloomberg. The proposed rules would bring crypto assets under the country's existing exchange-control framework.

The changes could affect how companies use cryptocurrencies and stablecoins for cross-border transactions. At least 2.2 billion rand ($135 million) in digital-asset transactions have been paused due to the proposed regulations.

The draft framework is intended to strengthen oversight of cross-border financial activity, reduce regulatory arbitrage, and improve authorities' ability to detect illicit financial flows. The proposals follow an earlier draft framework published in August covering reporting requirements for cross-border crypto transfers.

South African businesses have used stablecoins for cross-border activities, including receiving dividends and repatriating funds from subsidiaries elsewhere in Africa. However, the proposed rules could affect companies using stablecoins for transfers and treasury operations.