South Africa’s proposed restrictions on corporate cross-border stablecoin transactions have sparked opposition from cryptocurrency companies, which warn that the measures could drive legitimate activity offshore or into unregulated markets.
Draft regulations from the South African Reserve Bank and National Treasury would prohibit South African companies from making cross-border crypto transfers while also restricting incoming payments from private cryptocurrency wallets.
Under the proposed framework, outgoing crypto transfers would be classified as offshore capital movements and therefore subject to existing exchange-control rules.
Industry executives have raised concerns that the restrictions could make South African businesses less competitive by forcing companies to rely more heavily on traditional banking channels for international transactions.
They argue that conventional banking transfers can be slower and more expensive than blockchain-based payments, potentially increasing costs for businesses engaged in international trade and other cross-border activities.
Supporters of the proposed rules, however, say bringing cryptocurrency platforms within South Africa’s existing exchange-control framework would strengthen oversight and provide greater regulatory clarity.
Absa is among those supporting the approach, arguing that clearer rules could help bring crypto-related transactions into the formal regulatory system.
The debate comes as South Africa continues to develop its approach to digital assets while seeking to balance innovation with financial oversight and capital-flow controls.
Stakeholders have until the end of September to submit public comments on the proposed regulations. The feedback is expected to inform the authorities’ consideration of the restrictions and their potential impact on South Africa’s growing cryptocurrency sector.
