South Africa plans to revise regulations to include cryptocurrency assets in its capital flow management system

South African Finance Minister Enoch Godongwana announced that the government will release draft regulations to include cryptocurrency assets in the capital flow management framework under the Currency and Foreign Exchange Act, in order to improve cross-border capital regulation and complement existing anti money laundering and anti fraud regulations. Previously, the Pretoria High Court ruled that cryptocurrency does not fall under the legal definition of "currency" and that current foreign exchange control rules do not apply to cryptocurrency assets, urging the government to advance legislative reforms. Although the Reserve Bank of South Africa (SARB) has appealed the ruling, insisting that cryptocurrencies should be managed as currencies, the current regulatory focus has shifted towards clarifying administrative responsibilities and cross-border transaction reporting requirements. This reform will provide a legal basis for South African residents to participate in the global cryptocurrency market.