South African crypto firms oppose cross

South African crypto companies oppose cross-border transaction restrictions

Lev Shevtsov15
September
2026
00:10

In South Africa, a coalition of 171 organizations, including crypto exchanges VALR, Luno and AltCoinTrader, as well as nearly 4,000 individuals, has opposed draft rules on capital flows and cross-border transactions involving crypto assets. The group operates under the name Crypto Asset Taskforce for Advancing Sound, Technology-Neutral Regulation, abbre

Which restrictions the industry is challenging

The coalition opposes the National Treasury’s draft capital flow management rules and the South African Reserve Bank’s draft guidance on cross-border crypto-asset transactions.

In particular, the proposed rules would prohibit South African businesses from using crypto assets to import or export capital, even if the related commercial activity is lawful. Another restriction concerns non-custodial wallets: residents may transfer crypto assets from a licensed local exchange to a private wallet, but sending those assets back to a South African crypto-asset service provider is classified in the draft as a prohibited transaction.

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Binance’s position

Binance South Africa General Manager Hannes Wessels said market participants should take into account the authorities’ desire to protect the rand and the balance of public finances. At the same time, he urged regulators to distinguish the use of crypto assets for payments from speculative capital outflows.

According to him, the payment component of crypto assets should be excluded from strict currency controls while preventing abuse. Daily Maverick notes that restrictions on returning funds from private wallets to regulated exchanges could encourage users to keep assets abroad or trade through unverified peer-to-peer markets.

The publication also points out that non-custodial wallets do not have built-in verification of the counterparty’s identity. In the article author’s view, this creates difficulties in tracking the balance of payments and risks of tax evasion that currency control rules are intended to prevent. The draft regulations are still taking shape, and the coalition has collected nearly 4,000 signatures in support of its position.

Source: ua.news