South Africa's Proposed Crypto Regulations Threaten Economic Progress, Say Industry Leaders

CATASTROPHE, a coalition of leading regulated Crypto Asset Service Providers (CASPs) and other organizations in South Africa, has launched a national campaign to highlight the unintended consequences of proposed cross-border regulations. The draft framework published by the National Treasury and the South African Reserve Bank introduces two major restrictions: blocking cross-border crypto payments by businesses and restricting individual self-custody.

The CATASTROPHE coalition warns that these restrictive rules would harm domestic enterprises, slow economic participation, and isolate South Africa from the global digital economy. According to their website, thousands of jobs in South Africa would be threatened, millions of South African crypto holders would be adversely impacted, and R billions of tax revenues could disappear if these draft regulations are implemented.

CATASTROPHE proposes an alternative approach, calling for technology-neutral regulation that treats equivalent economic activities consistently. They emphasize that failing to apply the same principle to cross-border payments would represent a departure from sound regulation and be inconsistent with the principle articulated by SARB Governor Lesetja Kganyago.