South Africa Will Rewrite Draft Rules on Moving Crypto Assets Abroad

South African finance minister Enoch Godongwana said National Treasury and the South African Reserve Bank (SARB) will rewrite their draft rules on moving crypto assets across South Africa's borders after "thousands of comments." Godongwana made the announcement in his Medium-Term Budget Policy Statement (MTBPS), and the rethink follows months of resistance from the Bitcoin and crypto industry.

The Institute of Race Relations (IRR), a South African think tank, welcomed the decision by National Treasury and the SARB to rewrite their draft rules, and IRR chief executive John Endres called for exchange controls to be scrapped. Godongwana gave no timeline and did not say which provisions would change.

From Pre-Approvals to Legitimacy Checks

Godongwana said the rewrite of the draft rules should move away from pre-approvals:

"It is clear that we need to take a different approach to these amendments... We must aim to shift away from pre-approvals. Instead, we must assess transactions for legitimacy and tax compliance."

Consultations will begin with the aim of publishing a revised second draft for further comment. The rules under review are draft regulations published in April and a draft crypto asset manual published in August, and comments on the manual closed on 30 September.

A Rewrite, Not a Repeal

Industry players welcomed the decision, and the consultations are expected to inform a revised second draft for further public input. The draft rules have not been withdrawn, though. National Treasury and the SARB are rewriting them, and Godongwana gave no timeline and did not say which provisions would change.

The IRR welcomed the decision by National Treasury and the SARB to rewrite their draft rules, but Endres said the minister's aim does not go far enough:

"The minister's stated aim of moving away from pre-approvals is a step in the right direction. But the government should not rewrite the rulebook. It should throw it away."

Why It Matters

The rethink follows months of industry resistance, but National Treasury and the SARB are rewriting their draft rules rather than withdrawing them, and a revised second draft is coming with no timeline or specifics, which means Bitcoiners in South Africa have to stay alert for restrictive rules being proposed in the future. Exchange controls exist to give the state permission over where your money goes, and swapping pre-approvals for checks on legitimacy and tax compliance still leaves a central bank gatekeeper deciding which transfers count. We think Endres has it right that the rulebook should be thrown away, and until it is, Bitcoin in self-custody is the one cross-border policy that keeps your sovereignty out of a draft.