In brief
South Africa's National Treasury and the South African Reserve Bank (SARB) have published a draft Crypto Asset Manual for Cross-Border Activities, proposing a dedicated framework for regulating cross-border crypto asset transactions. The framework would require Crypto Asset Service Providers (CASPs) facilitating international crypto asset transfers to obtain separate authorisation from the SARB's Financial Surveillance Department, in addition to existing licensing and anti-money laundering requirements. The proposals introduce transaction reporting obligations, categorise authorised CASPs according to permitted activities, and establish limits for individual cross-border transactions. The Draft Manual also seeks to bring crypto asset flows within South Africa's broader capital flow management framework by regulating transfers involving foreign CASPs and self-hosted wallets. If implemented, the framework is expected to increase compliance and operational obligations for CASPs while providing regulators with greater visibility over cross-border crypto asset movements. Stakeholders have until 30 September 2026 to submit comments on the proposed regime.
In more detail
South Africa has taken a further step towards incorporating cross-border crypto asset transactions into its capital flow management framework.
On 3 August 2026, National Treasury and the SARB published the draft Crypto Asset Manual for Cross-Border Activities (“Draft Manual”) for public comment. The Draft Manual proposes a new authorisation and supervisory framework for CASPs that facilitate transactions involving crypto assets moving into or out of South Africa.
The Draft Manual follows the publication of the draft Capital Flow Management Regulations, 2026 (“Draft Regulations”) on 17 April 2026. The Draft Regulations are intended to replace the Exchange Control Regulations, 1961 and expressly bring crypto assets within South Africa’s capital flow management framework. Regulation 3(3)(b) of the Draft Regulations provides that an Authorised Crypto Asset Service Provider (Authorised CASP) may not buy, borrow, receive, sell, lend or deliver crypto assets, other than for purposes and subject to conditions determined by National Treasury. The Draft Regulations drew significant industry pushback over criminalisation provisions and property-rights concerns, prompting a joint statement on 15 May 2026 in which National Treasury and the SARB committed to developing a dedicated crypto asset framework. The Draft Manual is the latest development in this process and provides the practical detail by setting out those proposed conditions, together with the process for becoming an Authorised CASP.
The Draft Manual reflects a concern that the use of crypto assets should not allow cross-border movements of value to occur beyond the regulatory oversight applying to other financial channels. In a Joint Statement issued on 3 August 2026 to accompany the publication of the Draft Manual, National Treasury and the SARB identified the risk of regulatory arbitrage between regulated entities conducting cross-border activities and the need for greater visibility of the SARB’s Financial Surveillance Department (FinSurv) over illicit financial flows. The Draft Manual responds to these concerns by proposing a dedicated authorisation and reporting regime for cross-border crypto asset transactions, which would operate alongside the financial services, anti-money laundering and tax requirements already applicable to the sector.
This is significant because it represents one of the first attempts by South African authorities to integrate crypto asset transactions into the broader capital flow management framework rather than regulating them solely through financial services and anti-money laundering requirements.
What is being proposed?
The Draft Manual introduces an additional layer of authorisation for CASPs that wish to facilitate cross-border transactions. Although registration with the Financial Intelligence Centre (FIC) and licensing by the Financial Sector Conduct Authority (FSCA) under the Financial Advisory and Intermediary Services Act, 2002 would continue to apply where triggered, these regulatory approvals are aimed at different policy interests and would not authorise a CASP to conduct the cross-border activities contemplated in the Draft Manual. A CASP wishing to undertake such activities would therefore need to obtain separate authorisation from National Treasury, administered through FinSurv.
The key proposals include the following:
- Specific cross-border trigger: a transaction would be treated as cross-border when crypto assets move between an Authorised CASP in South Africa and either a foreign CASP or a non-custodial wallet, including so-called 'self-hosted' wallets controlled directly by an individual. The South African Authorised CASP facilitating the transaction would be responsible for identifying and reporting the resulting inflow into, or outflow from, South Africa to FinSurv. Notably, this means that a transfer from a domestic Authorised CASP to a client's own self-hosted wallet would be classified as an export of capital, even though no jurisdictional border is crossed and beneficial ownership of the crypto assets does not change. This is likely to be one of the most contested aspects of the proposed framework.
- Three categories of Authorised CASPs: Category One covers person-to-person remittance services using crypto assets as the underlying mechanism for transferring value, subject to a cap of ZAR 5,000 per transaction per day and ZAR 25,000 per applicant per calendar month; Category Two covers broader cross-border crypto asset services, including transactions between South African custodial wallets and wallets outside the domestic Authorised CASP environment; and Category Three combines the activities permitted under Categories One and Two.
- Different treatment of individuals and entities: Resident individuals would be permitted to externalise crypto assets through an Authorised CASP within the (now increased) single discretionary allowance of ZAR 2 million per calendar year. Transfers under the foreign capital allowance of up to ZAR 10 million per calendar year would be subject to the applicable South African Revenue Service (SARS) approval and tax compliance requirements. South African entities may buy, hold and sell crypto assets through domestic Authorised CASPs. However, corporates would not be permitted to undertake crypto asset transactions classified as imports or exports of capital, effectively prohibiting corporate externalisation of crypto assets entirely. For treasury, settlement and paytech businesses, this is the most commercially significant restriction in the proposed framework.
- No distinction between crypto asset types: the Draft Manual does not differentiate between categories of crypto assets. Stablecoins used for settlement purposes would accordingly be treated identically to volatile tokens. This is notable given the parallel workstream by the Intergovernmental Fintech Working Group (IFWG) and the SARB on stablecoins, and may warrant specific comment from stakeholders whose business models depend on the distinction.
- What is not caught: rand-denominated trades executed domestically through a local Authorised CASP, where no crypto assets move to or from a foreign CASP or non-custodial wallet, would not trigger a cross-border report to FinSurv. This defines the perimeter of the proposed regime and is relevant for CASPs and clients whose activities are confined to the domestic market.
- Offshoring and cloud controls: the Draft Manual places controls around offshoring and cloud arrangements, including requirements intended to preserve FinSurv's access to relevant data and systems. This is significant because most South African CASPs operate on offshore matching, custody or liquidity infrastructure. The proposed requirements would intersect with Joint Standard 1 of 2023 (on information technology governance and risk management) and with existing outsourcing arrangements, and are likely to be a material source of compliance cost for Authorised CASPs seeking to meet the proposed thresholds.
- Overlapping reporting obligations: Authorised CASPs would be required to stand up FinSurv reporting alongside existing FIC Travel Rule obligations and the Crypto-Asset Reporting Framework (CARF) reporting to SARS, the first reporting period for which runs from 1 March 2026 to 28 February 2027. Three overlapping data pipelines built on substantially the same underlying transaction set represent a material operational and systems challenge, particularly for smaller CASPs.
The Draft Manual does not treat crypto assets as legal tender or recognise them as a currency, a point the SARB has expressly emphasised. Its focus is narrower and more practical: regulating the cross-border movement of value through crypto asset transactions. Stakeholders should also note that the Joint Statement accompanying the Draft Manual acknowledges that comments received on the Draft Regulations have not yet been incorporated into the Draft Manual. In practice, this means that responses to both instruments should be coordinated, and any apparent inconsistencies between them may be resolved in subsequent drafts.
Consultation deadline
If implemented substantially in its current form, the framework is likely to increase compliance, reporting and operational obligations for CASPs involved in international crypto asset transactions, while providing regulators with greater visibility over cross-border crypto asset flows
CASPs and businesses whose payment, remittance or settlement models involve offshore CASPs or non-custodial wallets should consider the potential impact of the proposed authorisation, transaction and reporting requirements on their existing arrangements. Interested parties must submit written comments, using the prescribed response format, to SARB-FinSurvDocuments@resbank.co.za by close of business on 30 September 2026. Both the Draft Manual and the Draft Regulations remain open to revision following the consultation process and further stakeholder engagement.