South Africa plans to include cryptocurrency assets in the foreign exchange control framework

The South African Treasury has released the "Draft Regulations on Capital Flow Management for 2026" and is seeking public comments. The draft aims to restructure the current foreign exchange control framework based on the "Currency and Exchange Act," focusing on: aligning with the OECD and FATF recommendations on anti-money laundering, counter-terrorism financing, and curbing illegal capital flows; including crypto-assets in the foreign exchange control scope for enhanced risk management and regulation for the first time; further clarifying exemptions, licenses, and applicable conditions; and introducing an administrative penalty mechanism for violations of the regulations. Comments must be submitted via email to the address designated by the National Treasury within 30 days of the announcement.