04/05/2026
What’s happening
National Treasury published the draft regulations in the Government Gazette on 17 April 2026. The proposed draft regulations will replace the 1961 Exchange Control Regulations and bring crypto assets formally within South Africa’s capital flow management framework. The stated aim is to modernise oversight of cross-border flows, address gaps in crypto transactions and strengthen reporting on larger activities. This builds on existing FSCA and FIC requirements.
What does this mean
The proposals would mean:
Buying, selling, lending or transferring of crypto assets above a threshold (to be set by the Finance Minister and not yet defined) would need to be conducted through authorised crypto asset service providers.
Mandatory written declarations would be required within 30 days for holdings or entitlements to crypto assets, stating when and how the crypto asset was acquired and where it is held.
Crypto asset transactions will require a stated purpose, and using crypto assets outside of that purpose would trigger a mandatory sale.
Self-custody would likely remain possible below the undefined threshold, but activity at meaningful scale could become more restricted without using licensed intermediaries.
Authorities (including border control) would also gain powers to search individuals, demand declarations and seize assets from individuals suspected of violating the rules.
In the case of forfeiture, crypto asset holders would be mandated by law to “furnish full particulars in writing of all and any passwords, personal identification numbers, or codes which are necessary to enable National Treasury to obtain access to and control over the crypto assets and their disposal.”
Contravention of these proposed regulations could result in a R1,000,000 fine and five years imprisonment.
These provisions are overly restrictive and undermine the nature of crypto assets and the practical exercise of self-custody rights.
How you can act now
The deadline for public comment submission is approaching quickly. Please review these draft regulations and submit your own comments to the National Treasury at [email protected] before the 18 May 2026 deadline.
The draft regulations are available on the National Treasury website.
