South Africa’s National Treasury and the South African Reserve Bank (SARB) have issued a draft framework for cross-border transfers of crypto assets, setting out separate treatment for individuals, companies and certain wallet-based deposits. Under the proposal, resident individuals would be allowed to move crypto assets offshore within existing foreign exchange limits. At the same time, the draft would restrict companies from conducting cross-border crypto transactions and would classify some deposits originating from private non-custodial, self-custody wallets as unacceptable transfers for local crypto asset service providers, or CASPs.
Farzam Ehsani, co-founder and CEO of crypto exchange VALR, said the framework could damage South Africa’s domestic digital asset sector and push capital abroad if key provisions are not substantially revised. He argued that restricting regulated institutions from handling lawful business transactions, especially cross-border stablecoin payments, could drive activity underground or onto offshore venues. In his view, that outcome would weaken the visibility and monitoring capability regulators are trying to achieve. South Africa’s National Treasury and SARB have opened the draft for public comment, with submissions due by September 30.
South Africa’s National Treasury and the South African Reserve Bank (SARB) have published draft rules for cross-border transfers of crypto assets.
Farzam Ehsani, co-founder and CEO of crypto trading platform VALR, said the framework could harm the country’s domestic digital asset industry and push capital offshore if key provisions are not substantially changed.
Draft sets separate treatment for individuals and companies
Under the proposal, resident individuals would be allowed to transfer crypto assets abroad within their existing foreign exchange allowances. Companies, however, would face restrictions on conducting cross-border crypto transactions. The draft also treats some deposits coming from private non-custodial, self-custody wallets as unacceptable transfers for local crypto asset service providers, or CASPs.
Ehsani said those measures could encourage both businesses and retail users to move to offshore platforms.
VALR says the approach could reduce regulatory visibility
Ehsani said barring regulated institutions from processing lawful business transactions, especially cross-border stablecoin payments, could push activity underground or overseas. He said that would undercut the transaction visibility and monitoring capacity regulators are seeking.
National Treasury and SARB have opened the draft for public comment. The feedback deadline is September 30.
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