South Africa to include crypto in exchange control framework

South Africa will publish draft amendments to bring cryptocurrencies under its exchange-control regime, Finance Minister Enoch Godongwana said during a recent budget address. The proposed changes to the Currency and Exchanges Act would formally subject cross-border crypto transactions to the country’s capital flow management framework.

Why this matters

• Exchange control has been one of the most contested areas of South Africa’s crypto policy. While regulators previously applied exchange-control rules to certain offshore crypto transfers, the legal basis for doing so has been disputed.
• In 2025, the Pretoria High Court ruled that existing exchange-control laws — originally enacted to regulate capital flows — did not classify cryptocurrency as “capital” or “legal tender.”
• The court’s decision limited regulators’ ability to rely on current statutory definitions when treating cross-border crypto transfers, including movements involving self-hosted wallets, as capital exports.
• The court further stated that only an act of parliament can expand the scope of the definitions to include crypto.

Moving forward

Godongwana said:

“We will also shortly publish draft regulations under the Currency and Exchange Act to include crypto assets in our capital inflow management regime. Crypto assets will now be governed in the cross-border movement of capital framework, which will be complementary to regulations already in place to prevent the use of crypto assets to launder money and commit fraud.”

What to watch

• The extent to which offshore crypto transfers will require approval
• How regulators treat self-hosted wallets under the amended framework
• Reporting and compliance obligations for local exchanges
• Potential changes in the onshore/offshore status of crypto assets
• Whether stablecoins used for cross-border payments receive distinct treatment.