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, which marks a watershed moment for South Africa’s crypto asset holders and South African Authorised Crypto Asset Service Providers (Authorised CASPs). For the first time, cross-border crypto transactions will be subject to a comprehensive regulatory framework with the force of law, issued under the Currency and Exchanges Act, 1933 and Exchange Control Regulations, 1961.
The draft Manual establishes the operational rules for all cross-border crypto asset activities conducted through Authorised CASPs and introduces a three-tiered authorisation system – Category One: Remittance transactions capped at R5,000 per transaction per day and R25,000 per month. Category Two: Broader cross-border crypto asset transactions via South African custodial wallets. Category Three: Combined Category One and Category Two operations.
Key obligations and restrictions
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), maintain CIPC registration with physical presence in South Africa, and ring-fence their operations;
- Full CDD compliance under the Financial Intelligence Centre Act, FinSurv Reporting System certification, and record-keeping for a minimum of five years; and
- Non-compliance may result in official warnings, suspension, permanent withdrawal of authorisation, or criminal prosecution.
Draft capital flow management regulations, 2026
Stakeholders should note that the draft Capital Flow Management Regulations, 2026 published by National Treasury remain under consideration and have not yet been finalised. The draft Regulations propose a comprehensive amendment of the Exchange Control Regulations, 1961 and would, among other things explicitly define “capital” to include crypto assets; introduce compelled disclosure of private keys upon forfeiture; establish search and seizure powers for crypto assets; and impose criminal penalties of up to R1,000,000 or five years’ imprisonment (or fines equal to the asset value where this exceeds R1,000,000).
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 and addresses them with significant force. Criminal penalties include fines up to R1,000,000 or imprisonment up to five years – or, critically, fines equivalent to the full value of the assets if that exceeds R1,000,000. For large-scale contraventions, the financial exposure is severe and failure to comply is also a criminal offence.
The draft Regulations and draft Manual are designed to work in tandem: the Regulations provide the overarching legislative framework, whilst 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.
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.
