National Treasury and the South African Reserve Bank (SARB) have published the draft Crypto Asset Manual for cross-border activities, providing the operational detail for how South African crypto asset service providers (CASPs) may facilitate cross-border crypto transactions under the draft Capital Flow Management Regulations.
The draft Capital Flow Management Regulations established the principle that crypto assets fall within South Africa's exchange control framework. The Crypto Asset Manual now sets out how that framework would operate in practice.
It also introduces several requirements that are already attracting significant concern from the South African crypto industry, particularly the proposed restriction on companies entering into cross-border crypto transactions.
Why the Crypto Asset Manual matters
The Manual follows a commitment made by National Treasury and the SARB after industry raised concerns about the draft Capital Flow Management Regulations published in April.
In their joint statement of 3 August 2026, Treasury and the SARB described the Regulations and the Manual as complementary parts of a broader framework intended to strengthen oversight of cross-border financial activity, reduce regulatory arbitrage and support the Financial Surveillance Department's ability to detect and disrupt illicit financial flows.
For CASPs, however, the significance of the Manual goes beyond reporting requirements. It creates a new authorisation framework and sets out who may facilitate cross-border crypto transactions, which transactions fall within the framework and what conditions providers would need to meet.
A new authorisation layer for CASPs
Under the draft Manual, being licensed by the Financial Sector Conduct Authority (FSCA) and registered with the Financial Intelligence Centre (FIC) would not be sufficient for a CASP wishing to facilitate cross-border crypto transactions.
A CASP would also need to apply to the Financial Surveillance Department (FinSurv) for appointment under powers delegated by the National Treasury.
Until that appointment has been granted, the CASP would not be permitted to facilitate transactions treated as imports or exports of capital.
Authorised CASPs would also need to meet a number of financial and operational requirements, including:
- Minimum unimpaired capital of R5 million or 15% of average positive gross income over the preceding three years, whichever is higher.
- Registration with the Companies and Intellectual Property Commission (CIPC)
- A physical presence in South Africa.
- Ring-fencing of crypto operations from other business lines.
Once appointed, CASPs would have continuing obligations, including monitoring transactions through South African custodial wallets for potential contraventions, reporting deviations to FinSurv and suspending affected operations where compliance requirements are not met.
The three categories of Authorised CASP
The draft Manual creates three categories of Authorised CASP.
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Category One covers providers facilitating remittance transactions where crypto assets are used only as the settlement mechanism between individuals. The client would not take possession of the crypto asset, rand settlement would take place locally and net settlement with the foreign pay-out partner would occur in crypto. These transactions would be subject to limits of R5,000 per transaction per day and R25,000 per applicant per calendar month.
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Category Two covers providers offering South African custodial wallets with cross-border functionality. These wallets may be available to residents, foreign nationals temporarily in South Africa and non-residents, subject to the conditions set out in the Manual.
- Category Three combines the activities permitted under Categories One and Two.
The categorisation is important because an FSCA licence would not, on its own, authorise a CASP to undertake the cross-border activities contemplated by the Manual.
When does a crypto transaction become cross-border?
One of the most important features of the draft Manual is the distinction between domestic and cross-border crypto transactions.
The Manual proposes that crypto assets would be treated as moving cross-border when transferred between a domestic Authorised CASP and an offshore CASP, or from a domestic Authorised CASP to a non-custodial wallet, where the transaction results in a cross-border inflow or outflow.
The Manual takes a different approach to certain domestic activity. Crypto held in South African custodial wallets would be treated as domestic, while transactions between South African Authorised CASPs would be treated as domestic rather than as capital movements. Similarly, buying or selling crypto for rand through a domestic Authorised CASP, or transferring crypto between domestic Authorised CASPs, would be classified as a non-reportable domestic transaction.
This distinction is significant for South African users who purchase and hold crypto through locally licensed providers. The draft framework does not treat every crypto transaction as a cross-border transaction simply because the underlying asset is digital.
Who can move crypto across the border?
The current draft draws a substantially different distinction between individuals and companies.
For South African residents, the draft draws a sharp distinction between individuals and entities. Resident individuals aged 18 and older may externalise crypto through Authorised CASPs within the existing foreign exchange allowances: up to R2 million under the Single Discretionary Allowance, while transfers under the R10 million Foreign Capital Allowance remain subject to SARS tax-compliance requirements.
The position for resident companies is considerably more restrictive.
Under the draft, companies may hold South African custodial wallets and conduct domestic crypto transactions, but would not be permitted to enter into crypto transactions classified as imports or exports of capital.
This is currently one of the most significant points of contention in the draft framework.
The Manual also specifically addresses non-custodial wallets. Transfers from a domestic Authorised CASP to a non-custodial wallet may constitute a cross-border outflow where they result in an export of capital. Certain inbound transfers from non-custodial wallets to South African custodial wallets would also be classified as non-permissible.
Foreign nationals and non-residents would be able to open South African custodial wallets and transact, provided the funds or crypto assets originate from approved sources.
The position is different for residents of Lesotho, Namibia and Eswatini. The draft Manual states that Authorised CASPs may not enter into crypto transactions with residents of those three Common Monetary Area countries.
Why the crypto industry is pushing back
The proposed corporate restriction has already attracted criticism from some of South Africa's largest crypto platforms.
VALR founder and chief executive Farzam Ehsani has welcomed the regulators' willingness to refine the framework, but has criticised aspects of the Manual as prejudicial to crypto assets and licensed CASPs.
His central concern is that regulation should focus on the movement of value and the associated risks, rather than determining which technology may be used to move that value.
Luno's Africa and Europe general manager, Marius Reitz, has raised a similar concern about resident companies. As currently drafted, the Manual would prevent South African businesses from using crypto, including stablecoins, for cross-border commercial payments, supply-chain settlement and international trade.
That is particularly significant as stablecoins become increasingly relevant to international payments and settlement.
There is also concern that prohibiting legitimate corporate activity through regulated South African providers could have the opposite effect to that intended by the framework, by encouraging businesses to transact through offshore or less visible channels.
The treatment of non-custodial wallets is another area of concern. Ehsani has questioned whether classifying certain transactions involving self-custody wallets as non-permissible is workable in practice, particularly if the result is to push users towards offshore exchanges.
Novaque chief executive Shiven Moodley has raised a different concern: the proposed capital and compliance requirements could create significant fixed costs before smaller CASPs have reached sufficient scale, potentially favouring larger and better-capitalised incumbents.
There has also been some positive feedback. Reitz noted that treating digital assets purchased through a South African-licensed CASP and retained in South Africa as onshore is a welcome aspect of the proposed domestic transaction framework.
What happens next?
The draft Manual remains subject to consultation and further refinement.
Treasury and the SARB have confirmed that comments on the draft Capital Flow Management Regulations are still being considered and that, due to the timing and volume of submissions, the Manual has not yet been updated to reflect those comments.
Comments on the draft Crypto Asset Manual are open until 30 September 2026, using the prescribed submission template.
Under Exchange Control Circular No. 19, the final Manual will only be issued once comments have been considered. It will also only take effect once the underlying Capital Flow Management Regulations have been promulgated.
The proposals therefore remain subject to the consultation process and should not be treated as final.
For CASPs, however, the consultation provides an important opportunity to assess the proposed authorisation category, capital requirements and operational obligations.
For companies using crypto or stablecoins for cross-border payments, the proposed corporate restriction deserves particular attention.
And for businesses operating across the Common Monetary Area, the proposed treatment of residents of Lesotho, Namibia and Eswatini should not be overlooked.
The bigger question for South Africa's crypto market
The draft Capital Flow Management Regulations established the principle that crypto assets fall within South Africa's exchange control framework.
The Crypto Asset Manual is where that principle meets operational reality.
The industry's response suggests that the mechanics may prove more consequential than the underlying principle, particularly where the framework affects legitimate corporate use of crypto and stablecoins for international payments.
The proposed prohibition on resident companies is likely to remain one of the key areas of debate as the consultation progresses.
For CASPs navigating the proposed authorisation categories, or businesses assessing how the draft restrictions could affect cross-border payments, Thompson Legal Alliance can assist with understanding the proposed framework, assessing the potential impact on your business and preparing a submission for consideration by the regulators.