Crypto, investment firms push back against SARB and Treasury's draft cross-border rules

A coalition of South Africa's biggest crypto platforms, including VALR, Luno, AltCoinTrader and EasyEquities, is pushing back against draft SARB and Treasury rules governing cross-border crypto activity. The group, calling itself CATASTROPHE, says the rules would stop local businesses using regulated crypto platforms for international payments and create a "one-way door" for individuals who move assets into private wallets. Treasury and the SARB say the changes are meant to curb regulatory arbitrage and strengthen oversight of illicit financial flows. Public comment on the draft manual closes on 30 September 2026, and the coalition is calling on the public to register support before then..BizNews Reporter.A coalition of South Africa's largest crypto asset platforms and investment firms has launched a public campaign opposing draft regulations from National Treasury and the South African Reserve Bank (SARB) that would restrict cross-border crypto activity..The coalition, which calls itself CATASTROPHE — the Crypto Asset Taskforce for Advancing Sound, Technology-Neutral Regulation for Opportunity, Prosperity and a Healthy Economy — brings together exchanges VALR, Luno and AltCoinTrader, investment platform EasyEquities, and several smaller crypto firms, alongside academics, lawyers and economists.At issue are two linked pieces of draft legislation. The first is the draft Capital Flow Management Regulations, published for comment on 17 April 2026, which will replace the Exchange Control Regulations of 1961. Treasury and the SARB have described the changes as part of a "positive bias" approach to managing cross-border capital, involving fewer transaction pre-approvals and a greater focus on reporting and surveillance of high-risk flows. .The second is the accompanying draft Crypto Asset Manual for cross-border activities, published on 3 August, which sets out how crypto asset service providers would be authorised and required to report cross-border transactions. Public comment on the manual closes on 30 September 2026.According to its stated position, CATASTROPHE is opposing two specific elements of the draft framework. The first would prevent South African businesses from using regulated crypto platforms for legitimate international payments, putting them at a competitive disadvantage globally. The second concerns individual self-custody: under the draft rules, individuals could withdraw crypto assets from a licensed local platform to a personal wallet, but would not be permitted to transfer them back into a regulated South African platform — what the coalition calls a "one-way door" out of the regulated system.The coalition argues this contradicts Treasury and the SARB's own stated commitment to technology-neutral regulation, under which equivalent financial activities — whether conducted by a bank or a crypto platform — should face equivalent regulatory treatment.For their part, Treasury and the SARB have said the draft manual is intended to reduce regulatory arbitrage between entities conducting cross-border activity, and to strengthen the ability of the SARB's Financial Surveillance Department to detect and disrupt illicit financial flows, while complementing existing oversight by other financial regulators. The regulators have also emphasised that the framework does not distinguish between different types of crypto assets, nor does it declare crypto assets legal tender in South Africa..CATASTROPHE says that, if implemented as drafted, the regulations risk thousands of jobs, could affect millions of South African crypto holders, and may cost billions of rand in lost tax revenue and delayed foreign investment. The coalition is inviting individuals and organisations to register their support for its campaign via its website ahead of the comment deadline..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.

Crypto, investment firms push back against SARB and Treasury's draft cross-border rules

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