By 
By Bright Tibane, Partner, and Andani Thovhakale Associate, Bowmans
South Africa’s National Treasury and the South African Reserve Bank (SARB) have published the draft Crypto Asset Manual for Cross-Border Activities (draft Crypto Manual) for public comment. The draft Crypto Manual complements the draft Capital Flow Management Regulations (draft CFM Regulations), which were published in April this year.
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The draft Crypto Manual provides meaningful insight into the manner in which National Treasury and the SARB intend to implement the crypto asset-related provisions of the draft CFM Regulations and sets out the proposed framework applicable to cross-border crypto asset transactions, the authorisation and regulation of authorised Crypto Asset Service Providers (CASPs), and the associated reporting and compliance requirements.
Agenda of Crypto Manual
The draft Crypto Manual seeks to, amongst other things:
- establish a framework for the authorisation and supervision of authorised CASPs;
- prescribe the circumstances in which crypto asset transactions will be regarded as cross-border transactions;
- regulate the externalisation and repatriation of crypto assets; prescribe reporting obligations to the SARB’s Financial Surveillance Department (FinSurv); and
- impose operational, governance, compliance and reporting requirements on authorised CASPs.
When is crypto asset transaction an import or export of capital?
A significant aspect of the draft Crypto Manual is the proposed determination of when a crypto asset transaction will be regarded as an import or export of capital (a cross-border transaction).
Under the proposed framework, a crypto asset transaction will generally be regarded as a cross-border transaction 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.
Transactions between domestic authorised CASPs would continue to be treated as domestic transactions and would not be reportable to the FinSurv.
Resident individuals may transfer crypto assets from South African custodial wallets to offshore custodial wallets or non-custodial wallets, subject to South Africa’s existing exchange control allowances (the single discretionary allowance of ZAR2 million and the foreign capital allowance of ZAR10 million per calendar year).
Crypto assets previously externalised through authorised channels may subsequently be repatriated to South Africa and re-transferred offshore, provided the relevant reporting and documentary requirements have been satisfied.
“A more restrictive approach in relation to South African resident entities”
The draft Crypto Manual adopts a more restrictive approach in relation to South African resident entities. Resident entities may open South African custodial wallets and acquire or dispose of crypto assets domestically, but may not enter into crypto asset transactions that constitute imports or exports of capital.
Accordingly, cross-border crypto asset transfers by resident entities to offshore custodial wallets or non-custodial wallets, as well as transfers from offshore custodial wallets into South African custodial wallets, are categorised as non-permissible transactions.
CASPs would require authorisation from the FinSurv before facilitating transactions that are regarded as imports or exports of capital. Such CASPs would be subject to extensive reporting obligations, including, but not limited to:
- the monitoring of transactions passing through South African custodial wallets;
- reporting specified inward and outward crypto asset transactions to the FinSurv; and
- maintaining systems capable of reconciling crypto asset transaction data and reporting information submitted to the FinSurv.
Interested parties are invited to submit written comments on the draft Crypto Manual to the SARB at [email protected] by close of business on 30 September 2026. National Treasury and the SARB have indicated that both the draft CFM Regulations and the draft Crypto Manual remain subject to further refinement following consideration of public comments and stakeholder engagement.
A copy of the draft Crypto Manual can be accessed here.
