South Africa Plans to Bring Crypto Assets Under Foreign Exchange Controls, at Least $135 Million in Transactions Suspended

Odaily reports that according to people familiar with the matter, South Africa's proposed regulatory reform plan would bring crypto assets into the country's foreign exchange control system and restrict their use in cross-border transactions. At least 3 transactions with a total value of 2.2 billion rand (approximately $135 million) have been suspended as a result, including an investment by a private equity firm.

The South African government plans to bring crypto assets into the capital flow management system by updating the Currency and Exchanges Act, in order to strengthen monitoring of cross-border transactions and reduce the risks of regulatory arbitrage and illicit financial flows. The relevant rules are still in draft form, and the South African Reserve Bank has stated that it will continue to make adjustments based on public comments and stakeholder feedback, with the comment period running until September 30. (Bloomberg)