South Africa plans to revise regulations to include crypto assets in the capital flow management framework

According to MyBroadband, South Africa's Finance Minister Enoch Godongwana announced that the government will release a draft regulation to formally incorporate crypto assets into the capital flow management system under the Currency and Exchange Act.

This move aims to improve cross-border capital regulation and complement existing anti-money laundering and anti-fraud regulations. Previously, the Pretoria High Court ruled that cryptocurrencies do not fall under the legal definition of "currency," and that current foreign exchange control rules do not apply to crypto assets, urging the government to undertake legislative reform.

Although the South African Reserve Bank (SARB) has appealed the ruling, insisting that cryptocurrencies should be treated as currency for regulatory purposes, the current regulatory focus has shifted to establishing clear administrative responsibilities and cross-border transaction reporting requirements. This legislative reform will end the ambiguity surrounding crypto assets in foreign exchange control, providing a legal basis for South African residents to participate in the global crypto market.