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Point of Focus
- South Africa proposed a new bill to set new limits for crypto transfers.
- Individuals could transfer up to 2 million rands in crypto abroad annually.
- Companies would initially be barred from sending or receiving crypto across borders.
South Africa has proposed new limits and reporting requirements for Bitcoin (BTC) and cryptocurrency transfers abroad, raising industry concerns that the framework could push investment, jobs, and stablecoin activity into more accommodating jurisdictions.
Under the draft Crypto Asset Manual published by the National Treasury and South African Reserve Bank (SARB), individuals would be limited to transferring 2 million South African rands ($120,000) a year offshore under the Single Discretionary Allowance.
Tax-compliant individuals could transfer up to 10 million rands ($600,000) with approval from the South African Revenue Service.
Crypto exchanges would also be required to report transfers from local platforms to offshore exchanges or private self-custody wallets to SARB’s Financial Surveillance Department.
Companies could be locked out
While individuals would have a regulated route for moving crypto abroad, South African companies and institutions would initially be prohibited from sending or receiving crypto across borders.
The restriction could prevent exporters from accepting dollar-backed stablecoins, importers from settling international invoices through blockchain networks, and technology companies from receiving crypto payments from overseas customers.
BREAKING: 🇿🇦 South Africa to cap Bitcoin & crypto sent abroad.
• Individuals limited to $120k a year.
• Up to $600k if tax compliant.
• Exchanges must report offshore transfers. pic.twitter.com/dQIyPJUqpW
— Bitcoin Archive (@BitcoinArchive) August 4, 2026
Farzam Ehsani, CEO of crypto exchange Valr, questioned why companies should be prevented from using the technology for legitimate international transactions.
“Regulation should govern the movement of value and manage the associated risks; it should not dictate which technologies individuals and businesses can use,” Ehsani said.
He warned that prohibiting legitimate corporate activity through regulated providers could drive transactions underground or offshore, reducing regulatory visibility while undermining employment, tax revenue, investment, and business formation.
Compliance costs could hurt smaller firms
The proposed framework would require crypto asset service providers to obtain separate authorization for cross-border activity, introduce SARB-compatible reporting systems, and meet minimum capital requirements.
Shiven Moodley, macro strategist and CEO of fintech Novaque, said these obligations could disproportionately affect smaller companies.
“The requirements relating to minimum capital, local infrastructure, reporting, reconciliation, outsourcing and prior approval for offshore liquidity arrangements create high fixed costs before a business has achieved scale,” Moodley said.
He added that market-making, treasury, and technology operations could move abroad, resulting in “less domestic innovation, fewer local jobs and reduced regulatory visibility.”
Self-custody creates a “one-way door”
The draft would allow individuals to withdraw crypto from authorized local exchanges into private wallets if the transfers are reported and remain within applicable allowances.
However, crypto held in self-custody could not be returned to a regulated South African provider through the same route.
South Africa is moving closer to regulating cross-border crypto transactions.
New draft rules would require offshore crypto transfers to go through authorised providers and be reported to the central bank.
This is the direction the industry has been moving for years.… pic.twitter.com/p7hsBQ8zSk
— That Martini Guy ₿ (@MartiniGuyYT) August 4, 2026
Industry participants argue that this “one-way door” could encourage users to rely on offshore exchanges, undermining the framework’s surveillance objectives.
The proposals are not yet final. The public has until Sept. 30 to submit comments on the manual.
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