Share this article
South Africa Proposes Strict Crypto Regulatory Framework
South Africa’s financial regulators recommended that cryptocurrency be used for domestic payment purposes, but that it not be treated as legal tender or allowed as a settlement tool.
By Danny Nelson
Updated Dec 10, 2022, 9:15 p.m. Published Apr 17, 2020, 6:30 a.m.
Make us preferred on Google
South Africa’s financial regulators recommended cryptocurrency “remain without legal tender status” in a Tuesday roadmap outlining what could become the nation's first comprehensive crypto laws.
STORY CONTINUES BELOW
According to the policy paperhttps://www.ifwg.co.za/wp-content/uploads/IFWG_CAR_WG-Position_Paper_on_Crypto_Assets.pdf by South Africa’s “Intergovernmental Fintech Working Group” (IFWG), the burgeoning crypto asset sector – one survey suggests 10.7 percent of South African internet users invest in bitcoin – is past due for strict financial oversight, a licensure structure, closer cash flow monitoring and more.
“Crypto assets and the various activities associated with this innovation can no longer remain outside of the regulatory perimeter,” said the IFWG, whose members include the South African Reserve Bank, the Financial Sector Conduct Authority and the National Treasury, among others. “Clear policy stances” must be formed.
The policy paper would implement strict crypto oversight domestically. It would codify the Financial Action Task Force’s “new technologies” anti-money-laundering and “Travel Rule” recommendations, two international baselines for policing crypto businesses. Those businesses would also need to register with the AML watchdog the Financial Intelligence Centre.
Read more: Inside the Standards Race for Implementing FATF’s Travel Rule
Crypto would face new formal restrictions on when and how it can be used. For example, the policy paper calls for a prohibition against using crypto as a settlement tool within South Africa’s financial infrastructure, but asks that crypto be recognized “for domestic payment purposes,” and be regulated accordingly.
“Payments using crypto assets will, in the interim period, be subjected to a regulatory sandbox approach,” the IFWG said.
On the matter of raising capital, the paper says Initial Coin Offering regulations “must be aligned, as far as possible” with South Africa’s traditional securities governance schemes. Even so, payment and utility tokens would also have to submit their white papers to the regulators.
The policy recommendations follow IFWG’s previous crypto consultation paper, issued in Jan 2019. IFWG’s newest recommendations are open for comment through May 15.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Ukraine banned Polymarket and there’s no legal way for it to come back
Polymarket and similar platforms are considered unlicensed gambling operators, leading to blocked access.
What to know:
- Ukraine has no legal framework for Web3 prediction markets, and current legislation provides no recognition for such platforms.
- Polymarket and similar platforms are considered unlicensed gambling operators, leading to blocked access.
- Legal changes are unlikely in the near future, as Parliamentary revisions to gambling definitions are extremely improbable during wartime, leaving prediction markets in a legal deadlock.
Top Stories
