South African Treasury Extends Deadline for Capital-Flow Regulations

The South African government has sought to reassure the cryptocurrency industry that proposed capital-flow regulations will not criminalize digital asset ownership or apply retrospectively.

However, concerns remain that the draft regulations could have significant implications for crypto users. The draft Capital Flow Management Regulations aim to modernize how cross-border financial flows are monitored by shifting from a pre-approval model to a risk-based surveillance framework.

The inclusion of crypto assets within the exchange-control system is seen as a major change, with experts noting that it will no longer be possible for individuals to view crypto as a workaround to traditional exchange controls. This has sparked concerns about the potential impact on ordinary users and the need for clear guidance on how the draft will treat individuals who already hold crypto assets.