South Africa to revise crypto cross-border capital regulations

South African Finance Minister Enoch Godongwana has announced that the government will reconsider proposed cross-border capital flow regulations following thousands of public comments. The decision marks a shift toward a risk-based system rather than the previously proposed pre-approval model.

The draft Capital Flow Management Regulations, originally published in April, aim to overhaul the nation’s exchange control framework. The revised approach will focus on monitoring high-impact and high-risk transactions to combat illicit financial flows and ensure tax compliance, rather than requiring advance permission for transactions.

Industry experts suggest the move may protect local innovation and prevent legitimate digital asset activity from moving offshore. While the government intends to publish a revised second draft after further consultations, no specific timetable has been provided for the release of the updated framework.