Natalie Scott | Director | Werksmans Attorneys | mail me |
The South African Reserve Bank (SARB) and National Treasury published the draft Crypto Asset Manual for Cross-Border Activities for public comment on 3 August 2026. This marks a watershed moment for South Africa’s crypto asset holders and South African Authorised Crypto Asset Service Providers (CASPs).
For the first time, cross-border crypto transactions will face a comprehensive regulatory framework with the force of law. The framework operates under the Currency and Exchanges Act, 1933 and Exchange Control Regulations, 1961.
New framework for cross-border crypto transactions
The draft Manual establishes operational rules for all cross-border crypto asset activities conducted through Authorised CASPs. It also introduces a three-tiered authorisation system.
Category One covers remittance transactions capped at R5,000 per transaction per day and R25,000 per month. Category Two covers broader cross-border crypto asset transactions through South African custodial wallets. Ultimately, Category Three combines Category One and Category Two operations.
The manual imposes significant requirements, including:
- Only natural persons may engage in cross-border crypto transactions. Resident entities such as companies and trusts are expressly prohibited from doing so;
- Individual allowances apply: R2 million per calendar year (Single Discretionary Allowance) and R10 million (Foreign Capital Allowance);
- Transfers between a domestic Authorised CASP and an offshore CASP, or to non-custodial wallets, are classified as cross-border;
- Transfers from non-custodial wallets to domestic Authorised CASPs are prohibited;
- Authorised CASPs must hold minimum unimpaired capital of R5 million, or 15% of average positive gross income over three years, whichever is higher. They must also maintain CIPC registration with a physical presence in South Africa and ring-fence their operations;
- Authorised CASPs must maintain full CDD compliance under the Financial Intelligence Centre Act. They must also obtain FinSurv Reporting System certification and retain records for a minimum of five years; and
- Non-compliance may result in official warnings, suspension, permanent withdrawal of authorisation, or criminal prosecution.
These measures form a central part of the emerging crypto crackdown. They place greater responsibility on both crypto service providers and individual users.
Draft capital flow management regulations, 2026
Stakeholders should note that the draft Capital Flow Management Regulations, 2026, published by National Treasury, remain under consideration. The draft Regulations have not yet been finalised.
The draft Regulations propose a comprehensive amendment of the Exchange Control Regulations, 1961. Among other measures, they would explicitly define “capital” to include crypto assets. They would also introduce compelled disclosure of private keys upon forfeiture.
In addition, the draft Regulations would establish search and seizure powers for crypto assets. They would impose criminal penalties of up to R1,000,000 or five years’ imprisonment. Where the asset value exceeds R1,000,000, fines could equal the value of the assets.
The compelled disclosure of private keys is one of the most aggressive enforcement mechanisms in any crypto regulation globally. If a person has their crypto assets seized, they will have to provide all the passwords and PINs required to give National Treasury access to and control over the assets.
This regulation addresses the challenges around seizing digital assets with significant force. Criminal penalties include fines of up to R1,000,000 or imprisonment of up to five years. Critically, fines could equal the full value of the assets if that value exceeds R1,000,000.
For large-scale contraventions, the financial exposure is severe. Failure to comply also constitutes a criminal offence. As a result, the proposed measures add another significant layer to South Africa’s crypto crackdown.
Regulations and manual work together
The draft Regulations and draft Manual are designed to work in tandem. The Regulations provide the overarching legislative framework. Meanwhile, the Manual sets out the operational implementation requirements for cross-border crypto asset activities.
Should the draft Regulations be finalised in their current form, the regulatory landscape for crypto assets in South Africa will fundamentally transform. Together, the measures would significantly strengthen the regulatory framework surrounding cross-border crypto activity.
The draft Manual has been published for public comment by close of business on 30 September 2026. All stakeholders, including Authorised CASPs, fintech companies, institutional investors, and individual crypto holders, are encouraged to submit written representations to SARB’s Financial Surveillance Department during the comment period.
For affected stakeholders, the consultation period therefore provides an opportunity to consider the practical implications of the proposed crypto crackdown and submit their views before the regulatory framework advances.