Introduction
National Treasury has published the draft Capital Flow Management Regulations of 2026 for public comment, as conveyed in Government Notice No. 54520 in Government Gazette No. 7375 that was published on 17 April 2026. The draft regulations, which will replace the Exchange Control Regulations of 1961, can be accessed on the National Treasury website (www.treasury.gov.za). The due date for submitting public comments is 18 May 2026.
For the first time, these draft regulations formally bring crypto assets under South Africa’s exchange control regime by treating them explicitly as a form of capital for cross-border movement purposes. This introduces a new mandatory authorisation layer specifically for CASPs.
Note: This document is still a draft open for public comment. The final regulations may differ once comments have been considered and incorporated.
What Is an “Authorised Crypto Asset Service Provider”?
The draft defines an “authorised crypto asset service provider” as:
a crypto asset service provider as defined in item 22 of Schedule 1 of the Financial Intelligence Centre Act, 2001 and who is authorised by the National Treasury to facilitate transactions deemed as import and/or export of capital, directly or indirectly, utilising crypto assets as a medium of exchange.
In short: If you are already FIC-registered as a CASP (exchanges, wallets, OTC desks, custodians, etc.), you will need separate written authorisation from National Treasury to legally handle capital import/export transactions involving crypto above the yet-to-be-determined threshold.
Key Provisions Affecting Crypto Service Providers (Regulation 3)
- Exclusive Right to Handle Large Crypto Transactions No person (other than an authorised crypto service provider) may buy, sell, borrow, or lend crypto assets above the threshold except to another authorised provider.
- Mandatory Application & Compliance Process Clients must apply through an authorised provider and submit prescribed documents. Providers must enforce conditions set by Treasury.
- Purpose Limitation & Repatriation Rules Crypto obtained via an authorised provider may only be used for the declared purpose. Any unused portion must be offered back for sale to Treasury or the authorised provider.
• 4. Cross-Border Restrictions Strict rules apply to the export of crypto (Regulation 4), declarations of foreign crypto assets (Regulation 10), controlled accounts (Regulation 6), and more.
How This Draft Changes the Landscape
|
Aspect |
Current Position |
Under Draft 2026 Regulations (for comment) |
|
FIC Act Registration |
Required for AML |
Still required |
|
Cross-border crypto flows |
Largely unregulated in practice |
Explicitly subject to exchange controls |
|
Large-value transactions |
No specific crypto threshold |
Only Treasury-authorised providers allowed |
|
Enforcement powers |
Limited |
Explicit search, seizure & forfeiture at borders |
Practical Next Steps for Crypto Businesses
While this is still a draft for public comment (closing 18 May 2026), proactive CASPs should:
- Consider submitting formal comments before the 18 May 2026 deadline.
- Review their business model against the new definitions.
- Start preparing documentation for the upcoming Treasury authorisation application.
- Update client agreements, compliance manuals, and onboarding processes.
- Engage exchange-control specialists early.
Conclusion
The draft Capital Flow Management Regulations 2026 signal the end of the unregulated era for crypto capital flows in South Africa. By formally recognising and licensing crypto asset service providers within the exchange-control framework, National Treasury is bringing long-awaited structure — and new compliance obligations.
For compliant CASPs, this creates a protected, regulated market. For those who wait, the risk of operating outside the eventual rules will increase substantially.
This article is for information purposes only and does not constitute legal or tax advice.