Pretoria: National Treasury and the South African Reserve Bank (SARB) have opened a call for public comments on the draft Crypto Assets Manual for cross-border activities. This initiative aims to enhance the oversight and management of financial activities involving crypto assets across borders. According to South African Government News Agency, the draft Manual is designed to be read alongside the draft Capital Flow Management Regulations 2026. The objective is to strengthen the regulatory framework governing cross-border financial activities and to address emerging risks associated with crypto assets. The proposed measures aim to reduce the potential for regulatory arbitrage among entities conducting such activities and to improve the Financial Surveillance Department (FinSurv)'s capacity to identify and address illicit financial flows. These regulatory measures are intended to support the existing oversight of crypto asset activities currently conducted by the Financial Sector Conduct Authority, Financia l Intelligence Centre, and South African Revenue Service. The invitation for public comments follows the release of the draft Capital Flow Management Regulations, 2026, for public consultation on April 17, 2026, and the subsequent joint statement from National Treasury and SARB on May 15, 2026. This statement addressed various public concerns regarding the treatment and trading of crypto assets, including the potential regulation of cross-border transactions involving such assets. The joint statement also mentioned the release of a separate draft Manual for public comment, intended to complement the draft Regulations. This document provides practical guidance on implementing the draft Regulations related to cross-border crypto asset transactions, including the process for becoming an Authorised Crypto Asset Service Provider (CASP), permissions, conditions, administrative responsibilities, and reporting requirements for FinSurv. National Treasury and the SARB highlighted that comments received on the draft R egulations are currently under review. The draft Manual has not yet incorporated these comments due to its release timing and the volume of feedback. Both the draft Regulations and the draft Manual are subject to refinement based on public and stakeholder input. The draft Manual clarifies when crypto asset transactions are considered cross-border under the draft Regulations. A transaction is triggered as cross-border 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, necessitating reporting to FinSurv. Only individuals, at this stage, are permitted to externalise crypto assets through Authorised CASPs using their single discretionary or foreign capital allowance. The establishment of the trigger point ensures that cross-border flows from crypto asset transactions are consistently identified, reported, and monitored. The SARB follows an activity-based approach in this initiative, based on extensive research and assessment of the benefits and risks. It is important to note that the current approach does not differentiate between various types of crypto assets or designate them as an official currency in South Africa. The SARB continues to research and consult on other aspects of crypto assets, closely monitoring local and global developments to inform future adjustments to the draft Manual.
