South African lawmakers propose draft rules on cross-border crypto transactions
South African financial authorities have proposed new regulations requiring all cross-border cryptocurrency transactions to be processed through authorized providers. These measures aim to prevent illicit financial flows and improve regulatory oversight without granting crypto the status of legal tender.
Why it matters
This move reflects a global trend of emerging markets tightening regulatory frameworks around digital assets to align with international financial surveillance standards.
South Africa’s Treasury and central bank are moving towards regulating the use of cryptocurrency for cross-border transactions.
The National Treasury and the South African Reserve Bank (SARB) released a draft rulebook on Monday that proposes that sending crypto offshore must be conducted through an authorized provider and reported to the central bank’s Financial Surveillance Department (FinSurv).
“The proposed regulatory measures seek to minimize the risk of regulatory arbitrage between regulated entities conducting cross-border activities, and to enhance the ability of the Financial Surveillance Department (FinSurv) to detect, deter and disrupt illicit financial flows,” Treasury and the Reserve Bank said in a joint statement.
The framework would not make crypto legal tender, nor do the rules distinguish between different digital assets.
The two bodies have invited comments from interested parties with a deadline for submission of Sept. 30.
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