South African lawmakers propose draft rules on cross-border crypto transactions
A draft rulebook proposes that sending crypto offshore must be conducted through an authorized provider and be reported to the central bank’s FinSurv.
South African authorities are crafting regulations for cross-border cryptocurrency transactions. The National Treasury and the South African Reserve Bank (SARB) unveiled a draft rulebook on Monday, suggesting that sending crypto overseas should be done through authorized providers and reported to the central bank's Financial Surveillance Department (FinSurv).
The proposed measures aim to curb regulatory arbitrage and strengthen FinSurv's capacity to identify, prevent, and disrupt illicit financial activities. Though the framework won't make crypto legal tender or differentiate between various digital assets, the two entities have welcomed public comments due Sept. 30. These proposed rules expand on earlier draft regulations from April, which mandated crypto holders to declare assets above a specific limit and provide private keys to enforcement officers upon request.
South Africa's drive to regulate crypto arises amidst a swift global move towards enforceable, cross-border frameworks aimed at consumer protection and financial system safeguarding, while still promoting innovation. Despite this, the landscape remains fragmented, with each jurisdiction crafting its unique policies. Binance remains the leading exchange for cryptocurrencies, broadening its offerings from spot and derivatives to real-world assets (RWAs), payments, savings, yield, and other financial services.
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