National Treasury and the South African Reserve Bank have published the draft Crypto Asset Manual for cross-border activities for public comment, proposing how South African crypto asset service providers (CASPs) would be authorised to facilitate cross-border crypto asset transactions under the draft Capital Flow Management Regulations.
The publication fulfils a commitment made by Treasury and the SARB in May, when they responded to concerns raised following the publication of the draft Capital Flow Management Regulations in April. At the time, they said a separate framework governing cross-border crypto asset transactions would be released for public comment to complement the draft Regulations.
Read: New regulations will bring crypto into exchange control framework
Read: National Treasury defends draft capital flow regulations
The draft Manual has already drawn concern from major crypto industry participants, particularly over the proposed treatment of resident companies, non-custodial wallets, and the additional authorisation and compliance requirements for licensed CASPs.
In a joint statement issued on 3 August 2026, Treasury and the SARB said the draft Regulations and the draft Manual form part of a broader effort to strengthen oversight of cross-border financial activities and address emerging risks associated with crypto assets.
They said the proposed measures are intended to reduce regulatory arbitrage between regulated entities conducting cross-border activities and strengthen the Financial Surveillance Department’s ability to detect, deter, and disrupt illicit financial flows, while complementing the existing oversight of crypto asset activities by the Financial Sector Conduct Authority, the Financial Intelligence Centre, and the South African Revenue Service.
Authorisation framework for CASPs
The draft Manual is directly relevant to crypto providers already licensed as financial services providers because it proposes an additional authorisation and reporting layer for CASPs that facilitate transactions deemed imports or exports of capital.
Applicants would have to demonstrate that they are licensed by the FSCA and registered with the FIC as accountable institutions and apply to FinSurv for appointment under powers delegated by National Treasury. Until formally appointed, a CASP would not be permitted to facilitate transactions regarded as cross-border under the proposed Regulations.
The draft Manual also proposes financial and operational requirements for Authorised CASPs. Applicants would need to maintain minimum unimpaired capital of R5 million or 15% of average positive gross income over the preceding three years, whichever is higher. They would also have to be registered with the Companies and Intellectual Property Commission, maintain a physical presence in South Africa, and ring-fence their crypto asset operations from other business activities.
Once appointed, Authorised CASPs would be responsible for ensuring that cross-border crypto asset transactions comply with the Manual, monitoring transactions through South African custodial wallets for possible contraventions, reporting deviations or non-compliance to FinSurv, and complying with the framework’s reporting and record-keeping requirements.
Where an Authorised CASP is unable to comply with the conditions of its appointment, it would be required to suspend the affected operations until the non-compliance has been rectified, and approval has been obtained to resume them.
The Manual proposes three categories of Authorised CASPs.
Category One would apply to providers facilitating specified remittance transactions between individuals using crypto assets as the settlement mechanism. In this model, the client would not own or take possession of the crypto assets. Settlement between the South African client and the Authorised CASP would take place in rand, while net settlement between the Authorised CASP and the foreign pay-out partner would be effected using crypto assets. These remittance transactions would be limited to R5 000 per transaction per day and R25 000 per applicant per calendar month.
Category Two would apply to providers offering South African custodial wallets with functionality for specified cross-border crypto asset transactions. The Manual provides that these wallets may be opened for residents, foreign nationals temporarily in South Africa and non-residents, subject to the applicable conditions. Transfers to or from wallets other than South African custodial wallets hosted by Authorised CASPs would be subject to the Manual’s conditions and FinSurv reporting requirements.
Category Three would cover providers authorised to conduct both Category One and Category Two activities.
When transactions become cross-border
A key feature of the draft Manual is that it identifies the point at which a crypto asset transaction would be regarded as cross-border.
The proposed trigger point is when crypto assets are transferred between a domestic Authorised CASP and an offshore CASP, or from a domestic Authorised CASP to a non-custodial wallet, resulting in a cross-border inflow or outflow that must be reported to FinSurv.
The Manual distinguishes these transactions from activity that remains domestic. Crypto assets held in South African custodial wallets are regarded as domestic, and transactions between Authorised CASPs are likewise treated as domestic rather than imports or exports of capital.
It also classifies buying crypto assets with rand from a domestic Authorised CASP, transferring crypto assets between domestic Authorised CASPs, and selling crypto assets for rand as domestic, non-reportable transactions.
Treasury and the SARB say the proposed framework means that, at this stage, only individuals would be allowed to externalise crypto assets through Authorised CASPs using their Single Discretionary Allowance (SDA) or Foreign Capital Allowance (FCA).
The draft Manual provides that resident individuals aged 18 and older could transfer crypto assets to foreign custodial wallets or non-custodial wallets within the R2m annual SDA. Transfers under the FCA of up to R10m a year would remain subject to SARS tax compliance requirements.
Resident entities are treated differently. They may open South African custodial wallets and undertake domestic crypto asset transactions but may not enter crypto asset transactions deemed imports or exports of capital under the proposed Regulations.
The Manual also proposes specific treatment for transactions involving non-custodial wallets. Transfers from a domestic Authorised CASP to a non-custodial wallet would be treated as cross-border outflows where they result in an export of capital, while several inbound transfers from non-custodial wallets to South African custodial wallets are classified as non-permissible.
The Manual also distinguishes between foreign nationals, non-residents, and residents of the Common Monetary Area. Foreign nationals and non-residents would be able to open South African custodial wallets and undertake specified transactions, provided the crypto assets or rand involved originate from approved sources, such as foreign currency introduced through an Authorised Dealer, funds from a non-resident rand account, or crypto assets introduced from an offshore CASP.
Residents of Lesotho, Namibia, and eSwatini are treated separately: the Manual states that Authorised CASPs may not enter crypto asset transactions with residents of those countries.
Treasury and the SARB say the proposed reporting trigger is intended to ensure that crypto asset transactions giving rise to cross-border flows are consistently identified, appropriately reported, and effectively monitored. They add that the proposed framework does not distinguish between different types of crypto assets and does not recognise crypto assets as an official currency in South Africa.
Industry’s key concerns
Farzam Ehsani, founder and chief executive of VALR, said in a post on X that he was encouraged by Treasury and the SARB’s acknowledgement that the draft Regulations and draft Manual remain subject to refinement following public comments and stakeholder engagement.
He also welcomed that the draft Manual treats withdrawal from a CASP, rather than the purchase of a crypto asset, as the reportable transaction, referring to the proposed trigger point discussed above.
But Ehsani said “significant concerns” remain. He argued that South Africa would be better served by abolishing exchange controls altogether while preserving appropriate reporting, transparency, and regulatory surveillance. If South Africa retains capital controls, he said, they should be applied on a “principled, fair, and technology-neutral basis”.
“Regulation should govern the movement of value and manage the associated risks; it should not dictate which technologies individuals and businesses can use,” Ehsani wrote.
Ehsani said the draft Manual, in its current form, is “prejudicial to crypto assets and licensed CASPs” and risks damaging South Africa’s crypto industry. He said this was particularly concerning because stablecoins and other crypto assets can facilitate cross-border payments more quickly, cheaply, and transparently than traditional channels while remaining subject to reporting and oversight.
One of Ehsani’s principal objections concerns the treatment of resident entities. The draft Manual provides that resident entities may open South African custodial wallets and undertake domestic crypto asset transactions but may not enter crypto asset transactions deemed imports or exports of capital under the proposed Regulations.
MyBroadband reported that Marius Reitz, Luno’s general manager for Africa and Europe, said the draft Manual effectively prohibits companies from making cross-border payments with cryptocurrencies. He said this would restrict South African companies from using stablecoins for cross-border commercial transactions, supply-chain payments, and international trade.
Reitz said stablecoins enable instant, low-cost cross-border business-to-business payments and are one of the biggest use cases for cryptocurrencies. He warned that failing to accommodate corporate cross-border stablecoin payments would leave South African businesses out of step with an international ecosystem that is adopting next-generation payment rails.
Ehsani raised a similar concern, asking: “On what principled basis should corporations and institutions be prohibited from using this technology to move value legitimately between South Africa and the rest of the world?” He said prohibiting legitimate corporate activity through regulated providers could drive transactions underground or offshore, reducing the visibility and surveillance Treasury and the SARB are seeking to achieve.
The proposed treatment of non-custodial wallets is another likely flashpoint. The Manual classifies several inbound transfers from non-custodial wallets to South African custodial wallets as non-permissible, while transfers from a domestic Authorised CASP to a non-custodial wallet would be treated as cross-border outflows where they result in an export of capital.
Ehsani said treating transactions originating from self-custody wallets as non-permissible from the perspective of a South African CASP was “neither practical nor sensible”. He said it could push South Africans using self-custodial wallets to transact through offshore exchanges rather than regulated local CASPs.
MyBroadband also reported one positive assessment from Reitz: he said it was pleasing that digital assets bought on a South African-licensed CASP and remaining in South Africa would be considered onshore. This aligns with the Manual’s treatment of crypto assets held in South African custodial wallets as domestic and transactions between Authorised CASPs as domestic.
Moneyweb quoted Shiven Moodley, chief executive of fintech Novaque, as saying the proposed authorisation and compliance requirements could create high fixed costs before a business has achieved scale. He warned this could favour large, well-capitalised providers and make it harder for smaller South African firms to compete in the digital asset market.
Consultation continues
Treasury and the SARB say comments received on the draft Capital Flow Management Regulations are still being considered. Because of the timing of the draft Manual’s publication and the volume of submissions received, the Manual has not yet been updated to reflect comments already submitted on the draft Regulations. Both documents remain subject to refinement following the consultation process and stakeholder engagement.
Interested parties have until 30 September 2026 to submit comments on the draft Manual using the prescribed template. According to Exchange Control Circular No. 19, the final Manual will be issued only after comments have been considered and will be implemented once the Capital Flow Management Regulations have been promulgated.
Click here to download the draft Crypto Assets Manual.
