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South Africa’s National Treasury and the South African Reserve Bank opened a public consultation on Monday on a draft Crypto Assets Manual governing cross-border crypto transactions, with written comments due by 30 September.
On Monday, National Treasury and the South African Reserve Bank (SARB) invited stakeholders to submit written comments on the proposed Crypto Assets Manual, which is designed to complement the draft Capital Flow Management Regulations published earlier this year.
The initiative is part of the country’s broader South Africa crypto regulation framework, aimed at improving oversight of cross-border crypto activities, reducing illicit financial flows, and providing greater clarity for crypto asset service providers (CASPs).
The latest proposal builds on the draft Capital Flow Management Regulations released for public comment on 17 April, as well as a joint statement issued by National Treasury and the SARB on 15 May. Those earlier documents addressed public concerns surrounding the possession, trading, and treatment of crypto assets while indicating that a separate operational framework would follow.
The newly released draft Crypto Assets Manual provides practical guidance on how the proposed regulations would be implemented, particularly for businesses facilitating cross-border crypto transactions.
According to National Treasury and the SARB, the manual should be read alongside the draft regulations as part of a wider South Africa crypto regulation strategy intended to strengthen the supervision of cross-border financial activities.
The proposed measures are designed to reduce opportunities for regulatory arbitrage among entities operating across jurisdictions while improving the ability of the Financial Surveillance Department (FinSurv) to identify, prevent, and disrupt illicit financial flows involving crypto assets.
The framework will also complement the existing oversight responsibilities of the Financial Sector Conduct Authority (FSCA), the Financial Intelligence Centre (FIC), and the South African Revenue Service (SARS).
A central feature of the South Africa crypto regulation proposal is the clarification of when a crypto asset transaction becomes a reportable cross-border activity.
According to the draft manual, the trigger point occurs when crypto assets are transferred between a domestic authorised crypto asset service provider and an offshore CASP, or when assets move from a domestic authorised CASP to a non-custodial wallet, creating a cross-border inflow or outflow that must be reported to FinSurv.
“The trigger point arises when crypto assets are transferred between a domestic authorised CASP and an offshore CASP, or from a domestic authorised CASP to a non-custodial wallet, resulting in a cross-border inflow or outflow that must be reported to FinSurv.” — National Treasury and the South African Reserve Bank, Draft Crypto Assets Manual
The authorities explained that defining this trigger point is intended to ensure that cross-border crypto transactions are identified consistently, reported appropriately, and monitored effectively under the proposed regulatory framework.
The draft manual also outlines the application and approval process for authorised crypto asset service providers, the permissions governing cross-border crypto transactions, administrative responsibilities, and reporting obligations to FinSurv.
In addition, the proposal specifies that, under the current framework, only individuals would be permitted to externalise crypto assets through authorised CASPs using either their single discretionary allowance or foreign capital allowance.
“The above means that only individuals, at this stage, will be allowed to externalise crypto assets via authorised CASPs in terms of their single discretionary allowance or foreign capital allowance.” — National Treasury and the South African Reserve Bank, Draft Crypto Assets Manual
Officials stressed that the consultation process remains ongoing and that feedback received on the earlier draft regulations is still under review.
“National Treasury and SARB wish to emphasise that comments received on the draft regulations during the public consultation process are currently being considered.” — National Treasury and the South African Reserve Bank
The organisations noted that because of the timing of the manual’s release and the volume of feedback already submitted, the current version has not yet incorporated comments relating to the draft regulations.
Both the regulations and the accompanying manual remain subject to further refinement following stakeholder engagement and public consultation.
The SARB also confirmed that it has adopted an activity-based approach after conducting research, testing, and assessments of the potential benefits and risks associated with crypto assets.
Importantly, the central bank stated that the proposed framework does not distinguish between different categories of crypto assets and does not recognise crypto assets as official currency in South Africa.
Instead, regulators indicated that additional research and consultations are continuing, with both domestic and international developments expected to inform future updates to the framework.
This measured approach reflects the evolving nature of South Africa crypto regulation, balancing financial innovation with safeguards against financial crime and regulatory gaps.
The consultation marks another milestone in the development of South Africa crypto regulation, giving industry participants, financial institutions, crypto businesses, and other stakeholders an opportunity to influence the final framework before it is adopted.
Interested parties have until 30 September to submit written comments on the draft Crypto Assets Manual to the South African Reserve Bank’s Financial Surveillance Department.
Once the consultation concludes, National Treasury and the SARB are expected to review stakeholder feedback before finalising both the Capital Flow Management Regulations and the accompanying manual.
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