Crackdown on crypto flows aims to keep SA off greylist
South Africa is implementing new regulations on cross-border cryptocurrency transactions to prevent money laundering and terrorist financing. These measures are intended to keep the country off the FATF greylist.
Why it matters
Regulatory compliance with international financial standards is critical for South Africa to maintain its standing in the global financial system and attract foreign investment.
The Treasury and the South African Reserve Bank have introduced new proposals to direct cross-border transactions in crypto as part of a broader effort to strengthen the oversight of financial activities and curb emerging risks associated with virtual assets.
This comes as South Africa scrambles to demonstrate its ability to prosecute and stop illicit financial flows after exiting the Financial Action Task Force (FATF) greylist in October last year, which it had been placed on in February 2023 over significant weaknesses in its system to combat money-laundering and terrorist financing.
The FATF commenced a mutual evaluation of South Africa earlier this year, which will conclude in October 2027.
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