South Africa plans to amend regulations to include crypto assets in its capital flow management framework.

PANews reported on February 25th that, according to MyBroadband, South African Finance Minister Enoch Godongwana announced that the government will release a draft regulation to formally incorporate crypto assets into the capital flow management system under the Currency and Foreign Exchange Act. This move aims to improve cross-border capital regulation and complement existing anti-money laundering and fraud prevention regulations.

Previously, the Pretoria High Court ruled that cryptocurrencies do not fall under the legal definition of "money" and that existing foreign exchange control rules do not apply to crypto assets, urging the government to undertake legislative reform. Although the South African Reserve Bank (SARB) has appealed the ruling, maintaining that cryptocurrencies should be treated as money in terms of regulatory functions, the regulatory focus has now shifted to establishing clear administrative accountability and cross-border transaction reporting requirements. This legislative reform will end the ambiguity surrounding foreign exchange controls on crypto assets, providing a legal basis for South African residents to participate in the global crypto market.