South African High Court Ruling Sparks Debate Over Cryptocurrency Regulation

A recent high court judgment in South Africa has significant implications for the regulation of cryptocurrency and exchange control laws. On June 1, 2026, the Gauteng High Court ruled that Bitcoin is considered both money and capital under the Exchange Control Regulations of 1961.

The court's decision was made in the case of Mangundhla and Another v South African Reserve Bank and Others (No. 2022-029979). The judgment holds that transferring crypto assets to foreign exchange wallets amounts to the unlawful export of capital, with the court dismissing a review application against forfeiture orders totaling R6 million.

The court's definition of 'capital' as any financial asset capable of holding value or serving as a medium of exchange has been criticized for its lack of specificity and potential impact on various industries. The judgment also raises questions about the distinction between financial and tangible assets, with some arguing that the court's approach is overly broad.

Furthermore, the decision has sparked debate about the need to adapt traditional regulatory frameworks to accommodate digital assets. The Gauteng High Court's ruling conflicts with a previous decision in Standard Bank v SARB 2025 (5) SA 289 (GP), which held that cryptocurrency is neither money nor capital.