JOHANNESBURG, April 27, 2026 — South Africa has proposed a broad overhaul of its exchange-control framework that would bring crypto assets formally into the country’s framework for managing cross-border capital flows, as the government seeks to modernize decades-old restrictions and strengthen its position as a financial hub for Africa, according to Reuters.
The proposals include easing capital-flow restrictions, increasing discretionary offshore allowances for individuals and regulating crypto assets within the exchange-control system. National Treasury published the draft framework for public comment on April 17.
Crypto assets added to exchange-control framework
Under the proposed framework, crypto assets would be treated as a distinct but regulated form of capital for the first time.
Crypto trading above a specified threshold would be allowed only through a new class of regulated intermediaries, with holdings and significant transactions required to be declared to National Treasury, Reuters reported.
The changes would place crypto transactions more directly inside South Africa’s cross-border control regime, at a time when digital assets are used for trading, remittances and value transfer outside traditional banking channels.
Non-rand funds and investment flows
The reform package would also allow asset managers to run non-rand funds from South Africa. Such funds raise, deploy and report in foreign currencies, including U.S. dollars, but have historically needed to be domiciled offshore even when managed locally.
The Johannesburg Stock Exchange estimates the broader changes could attract at least 10 trillion rand, or about $608 billion, in investment over time, Reuters reported.
Shift from older exchange controls
South Africa’s exchange-control regime is based largely on rules dating back to 1961, with some provisions originating earlier.
Vukile Davidson, deputy director-general of financial policy at National Treasury, told Reuters the government is moving away from a broad exchange-control model toward more targeted capital-flow management.
Reuters reported the overhaul forms part of a broader reform agenda spanning financial regulation, infrastructure, energy, logistics and fiscal policy.
