Tag: SARB

The National Treasury and the South African Reserve Bank’s (SARB’s) updated statement on the Draft Capital Flow Management Regulations has moved South Africa’s crypto regulation debate into a more practical phase. Just as importantly, Treasury and SARB have clarified that the draft regulations are not intended to criminalise the possession of crypto assets or apply retrospectively.

For years, one question has shaped South Africa’s crypto debate. It sounds simple, but it carries major legal consequences. If bitcoin is bought in South Africa and moved to a wallet linked to an offshore custodian, has capital left the country? The latest High Court ruling brings that question into sharper focus. It shifts attention away from what Bitcoin is. Instead, it focuses on what Bitcoin can do.

The South African Reserve Bank (SARB) has published the third version of its proposed amendment to the payments regulatory framework. The amendments focus on two key instruments. These include a draft exemption notice that excludes certain payment activities from constituting “the business of a bank”, and a revised draft Authorisation Framework set out in a draft directive.

Foreign nationals who own fixed property in South Africa and derive rental income from it are increasingly facing new compliance hurdles when accessing or transferring those funds. Recent feedback from multiple South African banks indicates tighter access to non-resident bank accounts when account holders do not meet additional tax compliance requirements. As a result, foreign property owners could temporarily find themselves out of pocket under these new banking and tax rules.

The amount South African residents can send offshore without South African Revenue Service (SARS) clearance has remained unchanged since 2011. However, that is about to change. On 25 February, Finance Minister Enoch Godongwana announced that the Single Discretionary Allowance (SDA) will increase from R1 million to R2 million per person each calendar year.

When the Supreme Court of Appeal (SCA) hears the Standard Bank vs SARB appeal in 2026, the court will decide whether the 1961 Exchange Control Regulations can stretch to cover Bitcoin. This moment will define whether a borderless digital asset fits inside legislation written before computers existed. The stakes sit high, especially as the crypto crackdown intensifies across South Africa.

The trouble with forex controls is that they are far more effective at keeping money 'out' than at keeping it 'in'. Almost every historical case shows that forex controls were conceived in shamed and weakened circumstances. In every case they have ultimately proven to be unalloyed failures.