Enoch Godongwana Confirms New Cryptocurrency Regulation Framework Coming To SA
Finance Minister Enoch Godongwana has confirmed that South Africa will not be creating a sweeping cryptocurrency exchange control exemption framework. Instead, the South African Reserve Bank (SARB) will release a targeted framework later this year addressing cross-border cryptocurrency asset transfers.
This announcement follows a landmark Pretoria High Court ruling in May which declared that South Africa’s outdated exchange control regulations do not apply to cryptocurrencies — and called for urgent reform.
Court Rules Crypto Is Not Money
Judge Mandlenkosi Motha delivered a strong rebuke to the SARB over its lack of action in regulating digital assets, ruling that “cryptocurrency is not money.”
“The construction that cryptocurrency is money, by looking at the definition of money, which includes foreign currency, is strained and impractical,” Motha stated.
“Cryptocurrency is an asset that is bought and sold. There are practical challenges and implications if cryptocurrency is viewed as money.”
Citing an academic paper submitted by SARB and the Financial Surveillance Department (FinSurv), Motha noted that cryptocurrencies are “nothing more than code on a digital ledger” with a global nature.
YOU MAY ALSO LIKE: A New Ride-Sharing App ‘Tarpli’ Is On The Way From Surjik Holdings
He criticised regulators for being unprepared: “Cryptocurrency has been in existence for over 15 years; one cannot say SARB has been caught napping. In the same way, intellectual property rights had a niche carved for them in exchange control regulations, cryptocurrencies need some legislative attention.”
The ruling temporarily exempts crypto assets from South Africa’s exchange control laws — unless overturned on appeal. SARB has since challenged the judgment.
Details of SARB’s Upcoming Framework According to Enoch Godongwana
In a response to DA MP Wendy Alexander, Godongwana confirmed that SARB is working with the National Treasury and the Financial Sector Conduct Authority (FSCA) to finalise new rules for crypto asset service providers (CASPs) — including exchanges like Binance, Luno, and VALR.
The framework will:
Define parameters and conditions for cross-border crypto transactions
Set administrative responsibilities and reporting obligations
Prevent regulatory loopholes and illicit financial flows
“The National Treasury is currently engaging the SARB on updating and strengthening the exchange control legislative framework to enable the above framework,” Godongwana said.
As of December 2022, CASPs are classified as “accountable institutions” under the Financial Intelligence Centre Act, meaning they must comply with anti-money laundering, counter-terrorism financing, and proliferation financing rules.
In October 2022, the FSCA also declared crypto assets to be “financial products” under the FAIS Act — requiring licensing for advisory or intermediary services.
Long-Standing Regulatory Tensions
The SARB’s position on cryptocurrencies has shifted over the years. While the South African Revenue Service taxes crypto gains at the highest applicable rates, the Reserve Bank still refuses to officially classify them as “currency.”
In 2018, then-deputy governor Francois Groepe even suggested avoiding the term “cryptocurrency” altogether, favouring “cyber tokens.” In 2021, SARB governor Lesetja Kganyago referred to them as “crypto assets” instead.
The debate intensified after El Salvador’s 2021 move to make Bitcoin legal tender — a decision reversed in 2025 following IMF pressure. While Bitcoin can still be used for payments there, it is no longer official legal tender.
Community · 0 comments
Join the conversation. Sign in or create an account.