South African Government Proposes Strict Crypto Regulations

The South African government has released a draft regulation that proposes strict measures for crypto holders, including compulsory surrender and harsh penalties.

Under the new rules, authorities would have the power to search and seize assets, including checking phones for crypto apps at airports and points of exit. Violators could face fines of up to 1 million rand ($60,480) and up to five years in prison.

The draft regulation aims to replace South Africa's exchange control framework, which has been in place for over 60 years. However, critics argue that the approach is outdated and not suitable for modern digital assets.