Authored by Desiree Reddy and Ntokozo Ngubane.
On 3 August 2026, National Treasury and the South African Reserve Bank (SARB) jointly published the draft Crypto Asset Manual for cross-border activities (Crypto Asset Manual) for public comment. The Crypto Asset Manual sits alongside the draft Capital Flow Management Regulations, 2026 (draft Regulations), published on 17 April 2026. Together, these two instruments represent the most ambitious effort yet to bring cross-border crypto asset transactions within South Africa’s capital flow management framework. If you operate a crypto exchange, offer custodial wallets, or facilitate cross-border crypto transactions, this framework will directly affect your business.
The framework has three objectives: first, to close the gap between regulated and unregulated entities handling cross-border flows (minimising regulatory arbitrage); second, to strengthen the Financial Surveillance Department’s (FinSurv) ability to detect and disrupt illicit financial flows; and third, to bring crypto asset oversight in line with the existing supervisory roles of the Financial Sector Conduct Authority (FSCA), the Financial Intelligence Centre (FIC) and the South African Revenue Service (SARS).
Two points are worth flagging at the outset: the Crypto Asset Manual does not declare crypto assets legal tender, nor does it distinguish between different types of crypto assets (such as Bitcoin, stablecoins, or utility tokens). Dealing in crypto assets remains at the end-user's own risk, and any legal recourse is based on general common law principles — there is no dedicated statutory consumer protection regime for crypto asset losses.
The "Trigger Point" - When does a transaction become cross-border?
The central concept in the Crypto Asset Manual is the "trigger point” — the precise moment at which a crypto asset transaction is classified as cross-border and must be reported to FinSurv. In practical terms, the trigger point determines when regulatory obligations kick in.
A trigger point arises when crypto assets are transferred between a domestic Authorised Crypto Asset Service Provider (Authorised CASP) and an offshore CASP, or from a domestic Authorised CASP to a non-custodial wallet (i.e. a wallet where the user holds their own private keys). At that moment, the transaction is classified as an import or export of capital under the draft Regulations and reporting obligations arise.
By contrast, transactions that stay within the domestic ecosystem — such as transfers between two domestic Authorised CASPs, or buying and selling crypto assets through a domestic Authorised CASP — are classified as domestic and carry no FinSurv reporting obligation. In short: your crypto assets only attract cross-border obligations once they leave South Africa’s regulated custodial environment.
Three Categories of Authorised CASPs
Not every crypto service provider will be treated the same. The Crypto Asset Manual introduces a tiered authorisation system with three categories. It is important to understand that this is a new, separate authorisation from FinSurv — distinct from the FSCA licence or FIC registration that CASPs may already hold. The categories are based on the scope of permitted cross-border activities:
- Category 1 — Remittance-only: These Authorised CASPs facilitate remittance transactions between individuals, using crypto assets purely as a settlement rail. The end-user never owns or holds the crypto assets; settlement is in rand. Transactions are capped at R5 000 per transaction per day, with a monthly ceiling of R25 000 per applicant.
- Category 2 — Custodial wallets: These Authorised CASPs may offer South African custodial wallets, enabling residents and non-residents to hold crypto assets and transfer them across borders, subject to prescribed conditions and FinSurv reporting.
- Category 3 — Combined: These Authorised CASPs offer both Category 1 (remittance) and Category 2 (custodial wallet) services.
Who is allowed to move crypto assets across the border?
Resident individuals may transfer crypto assets cross-border within the existing single discretionary allowance (R2 million per calendar year) and foreign capital allowance (R10 million per calendar year, subject to a Tax Compliance Status PIN from SARS). These transfers are reportable to FinSurv as outward flows, and transactions under the single discretionary allowance must be tagged “SDA Crypto” on the FinSurv Reporting System.
Resident entities (companies, trusts, partnerships) face a harder line: they may not engage in any crypto asset transaction classified as an import or export of capital under the draft Regulations. For now, cross-border crypto flows through Authorised CASPs remain an individual-only affair. Entities may still buy, hold and sell crypto assets domestically through an Authorised CASP, but they cannot move them offshore.
Non-residents and foreign nationals temporarily in South Africa (such as contract workers) may transact through Authorised CASPs, but only on documentary proof that the funds represent savings from local earnings or proceeds of foreign currency introduced through an Authorised Dealer and converted to rand.
Two hard boundaries deserve special attention:
- First, transfers from non-custodial wallets to South African custodial wallets hosted by domestic Authorised CASPs are classified as non-permissible transactions for residents and non-residents alike.
- Second, residents of the Common Monetary Area, namely Lesotho, Namibia and eSwatini, are prohibited from entering into any crypto asset transactions with Authorised CASPs.
What Authorised CASPs must do
Every Authorised CASP bears rigorous ongoing duties. Clients must be onboarded under the Financial Intelligence Centre Act, 2001 (FIC Act), with KYC (know-your-customer) documentation retained for a minimum of five years. Transactions through clients' custodial wallets must be continuously monitored to detect any contravention of the draft Regulations, and Authorised CASPs must be able to match every client deposit to a specific executed transaction.
The consequences of falling short are severe. Non-compliance may result in an official warning, the temporary suspension of business activities, a mandatory external audit at the Authorised CASP’s expense, or in the worst case, the permanent withdrawal of authority to operate. Any non-compliance must be reported to FinSurv within seven days, and the Authorised CASP must suspend the affected operations until all discrepancies are rectified. Operations may resume only with FinSurv’s written approval.
How do you become an Authorised CASP? The licensing process
A CASP that wishes to facilitate cross-border transactions must apply to FinSurv for authorisation. This is a standalone process, separate from FSCA licensing under the Financial Advisory and Intermediary Services Act or registration with the FIC. No fee is payable to FinSurv on submission of the application.
Applicants must submit a detailed package to SARB-CASP@resbank.co.za, including (among other things) proof of CIPC registration, an FSCA registration certificate, proof of FIC registration as an accountable institution, a detailed business plan, a description of wallet infrastructure and client asset segregation arrangements, and a Risk Management and Compliance Programme compliant with the FIC Act.
If FinSurv is satisfied with the application, it will issue a conditional approval. The applicant then has six months to meet outstanding requirements — including appointing a capital flow management officer vetted by FinSurv, demonstrating minimum unimpaired capital, finalising the place of business, and successfully testing and certifying the FinSurv Reporting System. Only once these conditions are met will FinSurv publish the entity’s name in the Government Gazette and issue a formal letter of appointment. Until that letter is issued, the CASP may not facilitate any cross-border crypto transactions.
What must existing crypto businesses do differently?
If your business is already registered with the FIC and licensed by the FSCA as a CASP, you are not automatically authorised to handle cross-border crypto transactions. The Crypto Asset Manual creates a new, additional layer of authorisation that you must obtain from FinSurv before offering any cross-border service. Operating without this authorisation after the framework takes effect will be unlawful.
In practical terms, existing operators should consider the following steps now:
- Determine which category of Authorised CASP (1, 2 or 3) matches your current or intended business model.
- Ensure you hold both an FSCA licence and FIC registration — these are prerequisites for the FinSurv application.
- Prepare a detailed business plan covering wallet infrastructure, client asset segregation, governance arrangements, risk management procedures and a forecast budget for three financial years.
- Ring-fence your cross-border operations: the Authorised CASP business must be structurally separated and you may not establish branch operations outside South Africa.
- Confirm that you can meet the minimum unimpaired capital requirement (held in a segregated rand-denominated savings or investment account) and implement a straight-through processing system capable of daily reconciliation of all cross-border transactions against FinSurv confirmations.
- Budget for annual staff training on the draft Regulations and Crypto Asset Manual, and identify a suitable candidate for the role of capital flow management officer (who must be assessed as ‘fit and proper’ by FinSurv).
What comes next?
The Crypto Asset Manual is not yet final — it is open for public comment. Written submissions may be made to SARB-FinSurvDocuments@resbank.co.za by close of business on 30 September 2026, using the prescribed format in Annexure A to the Manual. Crypto businesses, industry associations and other stakeholders are encouraged to engage with the consultation process, as both the Crypto Asset Manual and the draft Regulations remain subject to refinement following stakeholder input.
Comments on the draft Regulations are still being considered. Notably, the joint media statement by National Treasury and the SARB confirms that public concerns raised during the earlier consultation on the draft Regulations have not yet been incorporated into the Crypto Asset Manual due to timing. Both instruments will therefore be refined together — making this an important window to shape the final framework.