South Africa proposes exchange controls for offshore crypto

South Africa is proposing new regulations to manage offshore cryptocurrency and stablecoin flows through the South African Reserve Bank’s (SARB) Financial Surveillance division. The draft rules include bans on using cryptocurrencies for offshore payments or receipts and prohibit all inbound transfers from self-hosted wallets.

Under the proposal, outbound transactions to self-hosted wallets would be classified as offshore transactions subject to exchange control limits. Licensed domestic crypto asset services providers (CASPs) would be required to report these transfers. The rules outline specific limits: remittances are capped at R5,000 per day or R25,000 per month, while asset transfers are subject to an annual limit of R2 million, which can increase to R10 million for those with proven tax compliance.

These measures follow legal challenges regarding whether cryptocurrencies fall under existing exchange control regulations. The consultation period for the new manual is scheduled to run until the end of September.