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South Africa drafts cross-border crypto rules for authorized reporting
The draft Crypto Asset Manual would require offshore transfers to run through an authorized provider and be reported to the Reserve Bank's FinSurv unit.
South Africa has released draft guidelines spelling out when cross-border cryptocurrency activity will become a regulated and reportable event, according to Reuters.
The draft Crypto Asset Manual, published jointly by the National Treasury and the South African Reserve Bank, is intended to plug gaps that could let crypto act as a backdoor around existing financial controls and make it easier to detect illicit flows.
Under the proposed framework, a crypto transaction becomes a cross-border event when assets move from a local authorized Crypto Asset Service Provider to an offshore provider, or when they move into a private, non-custodial wallet. Purchasing or selling crypto in rand via a local provider would not trigger reporting.
For now, only individuals would be allowed to move crypto offshore, and only within their existing foreign currency allowances. The SARB also said the framework does not grant crypto legal tender status and does not yet distinguish between different types of crypto assets, Reuters reported.