South Africa is preparing regulatory changes that would place crypto assets under the country’s exchange control regime and curb their use in cross-border transactions, according to Bloomberg, citing people familiar with the matter. The proposal has already affected deal flow: at least three transactions with a combined value of 2.2 billion rand, or about $135 million, have been paused, including an investment by a private equity firm. The government plans to make the change by updating the Currency and Exchanges Act, bringing crypto into the framework used to manage capital flows. Officials say the goal is to strengthen oversight of cross-border transactions and reduce risks tied to regulatory arbitrage and illicit fund movements. The rules are still in draft form. The South African Reserve Bank said it will keep refining the proposal based on public comments and feedback from stakeholders, with the consultation period running through Sept. 30.
South Africa is preparing regulatory reforms that would place crypto assets under the country’s exchange control system and restrict their use in cross-border transactions, according to Bloomberg, citing people familiar with the matter.
At least three transactions with a combined value of 2.2 billion rand, or about $135 million, have already been paused as a result. One of them involves an investment by a private equity firm.
Government plans to amend the legal framework
The South African government plans to update the Currency and Exchanges Act to bring crypto assets into its capital flow management framework. The stated aim is to strengthen monitoring of cross-border transactions and reduce risks linked to regulatory arbitrage and illicit fund flows.
The proposed rules remain at the draft stage. The South African Reserve Bank said it will continue to adjust the framework based on public comments and feedback from stakeholders. The comment period will remain open until Sept. 30.
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