South Africa's National Treasury and Reserve Bank have proposed a draft Crypto Assets Manual that bans corporate cross-border stablecoin transactions and restricts inbound transfers from private self-custody wallets. The rules aim to prevent South Africa from being placed back on the FATF greylist by enforcing legacy capital controls. However, major local exchanges like VALR and Luno are pushing back, warning that the restrictions will drive transactions offshore and reduce regulatory oversight.
South African cross-border crypto restrictions
- ▪South African authorities opened the draft crypto asset manual for public feedback and stakeholder engagement until September 30, 2026.
- ▪The proposed South African regulations aim to prevent the country from being placed back on the Financial Action Task Force (FATF) greylist.
- ▪The South African Reserve Bank and National Treasury jointly released a draft Crypto Assets Manual proposing restrictions on cross-border cryptocurrency transactions.
VALR industry opposition
- ▪VALR CEO Farzam Ehsani warned that banning corporate crypto flows will drive transactions underground or offshore, reducing regulatory visibility.
- ▪VALR CEO Farzam Ehsani welcomed a draft change triggering a reportable event upon withdrawing funds from a provider rather than at initial purchase.
- ▪South African cryptocurrency exchange Luno formally challenged the proposed capital-flow rules, urging parliament to rewrite the framework.
Corporate stablecoin transaction ban
- ▪The draft rules propose a ban on South African corporate entities conducting cross-border stablecoin and cryptocurrency transactions.
- ▪The proposed framework counts outgoing corporate crypto transfers as offshore capital moves that trigger legacy exchange control limits.
- ▪The draft framework permits individual South African residents to transfer cryptocurrency offshore within their existing foreign currency allowances.
Self-custody wallet treatment
- ▪The draft rules classify several inbound transfers originating from private, non-custodial self-custody wallets as non-permissible for local service providers.
- ▪VALR CEO Farzam Ehsani criticized the self-custody restrictions as impractical, stating they will push local users toward foreign, unregulated platforms.
Global stablecoin regulatory convergence
- ▪The United Kingdom Financial Conduct Authority published rules on June 30, 2026, bringing fiat-backed stablecoins under the Financial Services and Markets Act.
- ▪The European Union's MiCA framework caused several exchanges to remove USDT trading pairs for users in the European Economic Area.
- ▪The United States Treasury proposed regulations under the GENIUS Act to make stablecoin intermediaries and issuers traceable and non-anonymous.
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