South Africa's Proposed Crypto Rules Spark Industry Backlash

South Africa's National Treasury has released draft regulations that aim to modernize the country's exchange-control system and reduce unnecessary approvals. The proposal would require residents to declare certain holdings of cryptocurrency, gold, and foreign currency above yet-to-be-set thresholds.

The measures are contained in the Capital Flow Management Regulations, which were released for public comment in April. If adopted, the regulations would apply to assets above the set limits, and residents would have 30 days to declare them and offer them for sale to the National Treasury or an authorized dealer.

The payment would need to be made in South African rand and could not be below market value. The draft also excludes certain foreign bank balances or credits that give holders the right to receive payment in foreign currency or crypto assets from the gold category.