South African Reserve Bank launches consultation on cross-border crypto asset framework for authorised service providers

The South African Reserve Bank and National Treasury have published a draft manual setting out how the proposed capital flow management regime would apply to cross-border crypto asset transactions. The framework covers the authorisation and supervision of authorised crypto asset service providers, permissible transactions and reporting to the Financial Surveillance Department. A transaction would become cross-border when crypto assets move between a domestic authorised provider and an offshore provider, or from a domestic authorised provider to a non-custodial wallet. Transfers between domestic authorised providers would remain domestic. At this stage, resident individuals could externalise crypto assets through authorised providers under the ZAR 2 million single discretionary allowance or the ZAR 10 million foreign capital allowance, while resident entities could not undertake crypto asset imports or exports. Providers would be divided into remittance, custodial-wallet and combined-service categories, and would face a minimum unimpaired capital requirement equal to the higher of ZAR 5 million or 15% of average positive annual gross income over the preceding three years. Comments are due by Sept. 30, 2026. The manual and draft regulations remain subject to revision, and the manual does not yet reflect comments already submitted on the regulations. Detailed reporting categories and technical specifications will be issued once the policy framework is formally adopted.