South Africa’s cryptocurrency sector is facing fresh headwinds as major exchanges mobilize against a proposed regulatory framework that would impose strict capital controls on digital assets.
The draft Crypto Assets Manual, currently under review, seeks to treat the transfer of locally held crypto as a controlled cross-border transaction, a move industry leaders argue could severely disrupt market liquidity and user access.
The pushback comes from some of the country’s largest platforms, including VALR, which has publicly criticized the proposal.
Farzam Ehsani, co-founder and CEO of VALR, highlighted the potential negative impact on the ecosystem, warning that such restrictions could drive activity underground or offshore.
The exchanges contend that the measures fail to distinguish between legitimate commercial flows and illicit activity, potentially penalizing compliant businesses and retail investors alike.
This development in South Africa mirrors a broader global tightening of the regulatory environment for digital assets.