South Africa Plans to Include Crypto Assets in Foreign Exchange Control, Leading to Approximately $135 Million in Suspended Transactions

The South African government plans to incorporate crypto assets into its foreign exchange control framework, restricting their use for cross-border transactions. This has already led to at least three transactions totaling approximately 220 million rand (about $135 million) being directly suspended, involving private equity investments and corporate fund management. Industry insiders are concerned that if the relevant regulations are formally implemented, compliant digital asset transactions may be pushed to offshore or underground channels, affecting government tax revenue. Some companies are already considering legal action. South Africa is currently the second-largest crypto asset market in Africa, with Tether USDT being the dominant stablecoin in the region. As of April this year, the on-chain trading volume of the three licensed exchanges approached 27 billion rand. The South African Reserve Bank stated that the relevant draft is still in the consultation phase, with a deadline of September 30.