EXPERT OPINION | Why South Africa Still Has Exchange Controls in 2026 and How Crypto is Getting Pulled Into It

By Blake Player, Chief Commercial Offiver, VALR

An overdue conversation South Africans should be having: why do we still have exchange control in 2026, and why is crypto now being pulled inside it?

National Treasury published the draft Capital Flow Management Regulations, 2026 on April 17 2026 to replace the Exchange Control Regulations of 1961. Public comment closes on May 18 2026. For the first time, crypto assets would be formally brought inside South Africa’s capital control perimeter. By walling South Africa off, we risk being left behind in the new global, 24/7 programmable money era.

Money needs to move like information if we want to take part in the internet of value.

A quick history lesson

South Africa’s exchange control regime was substantially tightened in 1961 after Sharpeville and used through the apartheid years to defend the rand against capital flight.

More than three decades into democracy, the bones of this 1961 regime are still very much alive and shapes how we interact financially with rest of the world.

What exchange control means in practice today

At a high level, exchange controls mean that if you’re living, working or running a business in South Africa, you cannot freely move your after-tax money offshore.

A bank acts as an ‘authorised dealer,’ policing limits on Treasury’s behalf. Individuals are capped at R2 million discretionary plus R10 million foreign investment per year. Companies face approvals and lengthy paperwork for cross-border transfers and offshore loans, turning a 5-minute task into potentially weeks. Foreign investment in South Africa is also made more challenging as removing your funds is adminstratively difficult and slow.

What the draft proposes for crypto

Crypto assets are classified as ‘capital,’ placing them firmly inside the exchange control regime.

Transacting above a yet to be defined threshold would only be permitted through licensed ‘authorised crypto asset service providers.’

Holders must file written declarations of crypto holdings within 30 days. Each transaction would require a stated purpose, and using crypto outside that purpose could trigger a mandatory sale. In forfeiture scenarios, holders could be compelled to hand over passwords and private keys so the state can take control of self-custodied assets.

Penalties of up to R1 million and 5 years’ imprisonment are proposed.

Why is it important to talk about this?

Consumers pay the price indirectly as South Africa becomes a harder place to do business.

Research shows capital controls are typically only useful for short-term volatility. In the long term, the cost of friction is borne in lost investment, expensive payments, and a South African discount on every asset priced in rand.

For crypto holders, this materially changes how you will be able to purchase, hold, and use your crypto assets, and it is important to raise your concerns publicly.

Stay tuned to BitKE for updates into financial and crypto regulation in Africa.

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