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South Africa has published a draft Crypto Asset Manual that would bring cross-border crypto transfers into its capital-flow framework and require authorized platforms to report qualifying inflows and outflows.
The manual, released by National Treasury and the South African Reserve Bank, accompanies draft Capital Flow Management Regulations. Public comments close on September 30.
Transfers Between Authorized South African CASPs Remain Domestic
A transfer would become an export of capital when an authorized South African crypto asset service provider sends assets for a resident individual to an offshore provider or non-custodial wallet. Transfers from an offshore provider into a domestic authorized platform would count as imports of capital.
Both would be reported to the Reserve Bank’s Financial Surveillance Department. Incoming transfers originating from non-custodial wallets would be prohibited.
Crypto purchases and sales for rand through domestic authorized providers would remain domestic and non-reportable. Transfers between two authorized South African providers would receive the same treatment.
Individuals Could Transfer R2M or R10M Offshore Each Year
Resident individuals aged 18 or older could externalize crypto through authorized providers under two foreign-exchange allowances.
The single discretionary allowance would permit up to R2 million per person each calendar year without a Tax Compliance Status PIN. The foreign capital allowance would permit up to R10 million, but the individual must be a taxpayer in good standing and obtain South African Revenue Service approval.
Providers would verify customer identification, monitor allowance use and report cross-border transactions through FinSurv. Resident companies could buy, sell and hold crypto in domestic custodial wallets but would not initially be allowed to make transactions classified as imports or exports of capital.
Three CASP Categories Would Require Treasury Authorization
The draft establishes three provider categories. Category One would cover specified remittance transactions between individuals using crypto as a settlement medium. Category Two would cover specified cross-border crypto transactions, including domestic custodial wallets with approved offshore functionality.
Category Three would allow a provider to combine both sets of activities. Applicants would need National Treasury authorization in addition to Financial Intelligence Centre registration and Financial Sector Conduct Authority licensing.
Public Comments Close September 30 Before Rules Are Finalized
The framework would not distinguish between Bitcoin, stablecoins or other crypto assets and would not declare them an official South African currency.
Treasury and the Reserve Bank said the manual and accompanying regulations remain subject to revision after public comments and stakeholder engagement.
