South Africa Amends Exchange Control Laws to Include Cryptocurrencies

South Africa is set to revamp its approach to regulating cryptocurrencies. In response to a court decision last year, the government aims to clarify the application of exchange control laws to digital assets.

The Pretoria High Court ruled in 2025 that existing laws did not explicitly cover cryptocurrencies as 'capital' or 'legal tender', limiting regulators' ability to treat cross-border crypto transfers accordingly. Finance Minister Enoch Godongwana has stated that draft regulations will be published under the Currency and Exchange Act, effectively subjecting cross-border crypto transactions to South Africa's capital inflow management regime.

The updated framework is expected to address concerns about the regulatory treatment of self-hosted wallets and offshore transfers, as well as clarify reporting and compliance obligations for local exchanges. Stablecoins used for cross-border payments may also receive distinct consideration under the new regulations.