South Africa is on the cusp of a major regulatory overhaul, one that has the potential to either propel or hinder the country's crypto industry. The National Treasury's draft Capital Flow Management Regulations aim to modernize exchange controls for the first time in over six decades.
The regulations would bring crypto assets within the country's capital flow framework, aligning South Africa with OECD and Financial Action Task Force recommendations on combating money laundering and illicit financial flows.
However, the industry is sounding alarm bells. VALR and Luno, the country's two largest licensed cryptocurrency exchanges, have expressed concerns that the draft regulations contain provisions that are overly restrictive.