National Treasury and the South African Reserve Bank have extended the deadline for the public to comment on the draft Capital Flow Management Regulations following requests for more time to review the draft and submit input.
The move comes after industry reaction to the draft, which Moonstone examined in an article on the key uncertainties raised by commentators and crypto market participants.
Read: Commentators flag key uncertainties in draft exchange control proposals
In statement on 15 May 2026, Treasury and the SARB address some of the criticism that has already surfaced. They say the draft regulations do not intend to criminalise the possession of crypto assets, nor do they apply retrospectively.
Treasury also says concerns that holders of crypto assets, gold, or foreign currency could be required to sell those assets to the state or to banks dealing in foreign exchange are misplaced, adding that any such requirement would arise only in limited circumstances, such as where an offence has been committed.
Treasury further says the regulations are designed to strengthen the authorities’ ability to detect, deter, or disrupt illicit financial flows, while complementing the regulatory regimes already implemented by the Financial Intelligence Centre and the Financial Sector Conduct Authority.
It also notes that the Constitution protects property rights, while recognising that suspected illicit activity warrants the attention of the authorities.
A further development is that Treasury says a proposed cross-border crypto asset framework, in the form of a draft manual, will soon be released for public comment. The manual is intended to clarify which activities will count as cross-border crypto asset transactions, which transactions will be subject to capital flow management measures, and what the obligations of authorised crypto asset service providers will be.
Treasury says the aim is to enable lawful cross-border crypto transactions within clear guidelines, while reducing uncertainty and protecting the integrity of the financial system.
That point will be closely watched by exchanges, merchants, and advocacy groups that have argued the draft could go beyond Treasury’s stated cross-border focus. Their concerns have centred on whether the regulations may in practice affect ordinary use of crypto, particularly where thresholds, reporting requirements, and the role of authorised intermediaries are not yet fully defined.
Written comments on the draft regulations must now be submitted by close of business on Tuesday, 30 June 2026 instead of 18 May. Submissions must be sent to Commentdraftlegislation@treasury.gov.za
Treasury says it and the SARB will consider the submissions and make appropriate revisions after the deadline.
