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South Africa to Regulate Crypto Assets Under Currency and Exchange Act

Finance Minister Enoch Godongwana’s upcoming draft regulations will integrate crypto assets into the existing capital flow management framework in response to a recent court ruling.

Summary

South Africa’s Finance Minister Enoch Godongwana revealed that the government will soon publish draft regulations to regulate crypto assets under the Currency and Exchange Act’s capital flow management framework. This development follows a Pretoria High Court ruling that temporarily lifted exchange controls after determining that crypto is not currency. The South African Reserve Bank has since appealed and is working on cross-border crypto regulations.

Terms & Concepts
  • Currency and Exchange Act: A South African law governing capital flow management and foreign exchange, now being expanded to include crypto assets.
  • Capital flow management: Regulatory measures designed to monitor and control the movement of capital across borders to ensure financial stability.
  • South African Reserve Bank: The central bank of South Africa, responsible for implementing monetary policy and managing the country's financial system.