National Treasury’s draft Capital Flow Management Regulations 2026, published on 17 April 2026 ("Draft Regulations"), marks a re-write of the 1961 Exchange Control Regulations to cater for, inter alia, crypto assets.
The Draft Regulations are open for public comment until 30 June 2026.
Regulating the digital shift
The Draft Regulations introduces, and amends, various definitions to regulate the use of crypto assets in cross border transactions.
Key changes include:
- defining capital to expressly include crypto assets as well as anything with a monetary value, or which can be converted to money or disposed of for monetary consideration;
- the cession of, or the assignment or transfer of any capital or any right to capital, to or in favour of a person not resident in South Africa as being an export of goods or capital and, from a person who is not resident in South Africa, to or in favour of a person resident in South Africa as being an import of goods or capital;
- the lending of crypto assets as financial assistance;
- defining money broadly to include a medium of exchange or means of payment; and
- the concept of transfer as a transfer of legal ownership or beneficial ownership, or assigning, delivering, transmitting, or moving property, or control over the property, from one person, entity or jurisdiction to another person, entity or jurisdiction, and involving any mechanism that enables such a transfer in possession or control, regardless of the technology, process, or method used.
Crypto asset
A crypto asset refers to a digital representation of value (not issued by a central bank) capable of being traded, transferred, or stored electronically for payment, investment, or other uses. To qualify as a crypto asset, the asset must use cryptographic techniques and distributed ledger technology.
CASP role
To facilitate crypto asset transactions, the Draft Regulations contemplate a role for an 'authorised crypto asset service provider' ("CASP").
A CASP refers to a person:
- who carries on the business of:
- exchanging a crypto asset for a fiat currency or vice versa,
- exchanging one form of crypto asset for another,
- conducting a transaction that transfers a crypto asset from one crypto asset address or account to another,
- safekeeping or administration of a crypto asset or an instrument enabling control over a crypto asset, and
- participation in and provision of financial services related to an issuer’s offer or sale of a crypto asset, on behalf of a client;[1] and
- who is authorised by National Treasury to facilitate transactions deemed as the import and/or export of capital using crypto assets as a medium of exchange.[2]
Regulatory framework
Under the proposed regulatory framework:
- no person may transact (buy, sell, borrow or lend) in a crypto asset, in an amount exceeding a certain threshold (other than through a CASP) and, where that threshold is exceeded, with the permission of National Treasury and subject to such terms as may be imposed;
- a person intending to transact in crypto assets, exceeding the prescribed threshold, must apply to a CASP, provide the required information and use the crypto assets for the purpose applied for. Any crypto assets no longer required for the purpose applied for must immediately be offered for sale to National Treasury or to a CASP;
- a CASP may only engage in actions which the CASP has been expressly authorised to perform (for purposes and on terms that National Treasury may determine); and
- a CASP may be prohibited from transacting with a specified person, fund or Government or from transacting for a specific purpose.
Export of crypto assets
A person may not, without permission:
- take, send out, or remove crypto assets from South Africa (directly or indirectly);
- make payment to, or place any sum to the credit of, a non-resident;
- lend crypto assets to a non-resident (or to a resident with significant non-resident shareholding, or on the strength of security provided by a non-resident).
In this regard, the Draft Regulations provide for the following:
- declarations to be made, on departure of persons, in respect of crypto assets under their control which are intended to be removed from South Africa;
- furnishing documents evidencing permission for removal of control of crypto assets from South Africa;
- searching persons or articles, on reasonable grounds, for evidence of control of crypto assets.
Import of crypto assets
Similar declaration and documentary evidence obligations, and search, seizure and forfeiture entitlements are provided for in respect of the import of crypto assets into South Africa.
Declaration and right of acquisition of crypto assets
Similar to obligations in respect of foreign currency, a person who has under their control, or who becomes entitled to sell, or procure the sale, or transfer, of any crypto assets, or to receive payment of any amount in crypto assets, in excess of a monetary threshold, must within 30 days (or a longer period as may be prescribed), declare same. The declarant is required to sell the crypto assets for market value consideration (and fair value consideration in respect of a right to receive payment in crypto assets), and may not stop, delay or frustrate such requirements.
Export of capital
Similar to the current exchange control regime, a person may not, except with permission and on terms as may be imposed, enter into any transaction where crypto assets or a right to crypto assets is exported, directly or indirectly, from South Africa.
Sanctions
The Draft Regulations also provide for:
- administrative sanctions (including financial sanctions, public reprimand/censure, revocation of authorisation, restricting transactions that may be concluded, remedial action and disqualification of personnel from their roles);
- the furnishing of passwords, personal identification numbers, and codes to enable obtaining access, control and disposal of crypto assets;
- attachment and forfeiture of crypto assets in respect of which a contravention is committed or reasonably suspected;
- certain payments to be made and/or property to be transferred; and
- criminal sanctions (a fine not exceeding R1 million or value of the crypto asset (whichever is greater), or imprisonment not exceeding 5 years, or to both a fine and imprisonment).
Administrative relief
Similar to the current regulations, provision is made for obtaining administrative relief in respect of contraventions.
Queries
Please contact us should you have any queries regarding the Draft Regulations.
[1] Item 22 of Schedule 1 to the Financial Intelligence Centre Act, 2001
[2] Definition of crypto asset service provider
