South Africa’s National Treasury has released draft Capital Flow Management Regulations 2026, integrating crypto assets into the exchange control system alongside currency, gold and securities, and introducing new licensing, reporting and enforcement requirements.
South Africa’s National Treasury has released the draft Capital Flow Management Regulations 2026 (the Draft Regulations), aimed at bringing crypto assets within the country’s exchange control framework to strengthen oversight of emerging financial instruments and address associated risks.
The Draft Regulations were published under Government Notice No. 54520 in Government Gazette No. 7375 on 17 April 2026. They are intended to replace the Exchange Control Regulations of 1961 and are issued under the Currency and Exchanges Act, 1933.
The proposed Capital Flow Management Regulations 2026 establish a consolidated framework for the control of capital, gold, currency and crypto assets in South Africa, effectively repealing and replacing the 1961 regime.
Inclusion of crypto assets
Under the draft framework, crypto assets are formally incorporated into capital flow controls. They are defined as digital representations of value using distributed ledger technology that can be traded or stored electronically for payment or investment purposes.
Only authorised crypto asset service providers will be permitted to facilitate transactions involving the import or export of capital via crypto assets. The regulations also restrict the buying, selling or lending of crypto assets above a specified threshold unless carried out through an authorised provider or with prior permission.
Restrictions on currency and gold
The draft maintains that, in general, only authorised dealers may trade in foreign currency or gold.
Where foreign currency or gold is acquired for a specific purpose but is no longer required, it must be immediately offered back for sale to the National Treasury or an authorised dealer. In addition, residents who become entitled to sell gold above prescribed thresholds must offer it to the National Treasury within 30 days.
Import and export controls
The regulations prohibit, without Treasury permission, the removal of currency, crypto assets, gold or securities from South Africa, as well as payments to non-residents.
Individuals entering or leaving the country must declare any currency, crypto assets, gold or securities in their possession to an enforcement officer. Enforcement officers are empowered to search persons and goods and may seize assets suspected of being imported or exported in breach of the regulations.
Reporting and foreign assets
Residents are required to declare the acquisition of foreign assets or crypto assets within 30 days, including details of how and where they are held.
Any person obtaining possession of foreign currency or crypto assets above a specified threshold must declare them and may be required to sell them to the National Treasury or an authorised dealer for South African Rand.
Enforcement, sanctions and relief
The National Treasury may require payments due to non-residents to be made into controlled accounts where restrictions apply or where a contravention is suspected.
Non-compliance by authorised dealers or crypto service providers may result in administrative sanctions, including financial penalties, public reprimands or revocation of authorisation.
Assets involved in contraventions may be forfeited to the State for the benefit of the National Revenue Fund. The framework also introduces an administrative relief mechanism allowing voluntary disclosure of breaches to avoid criminal prosecution, although penalties or levies may still apply.
Offences and penalties
Breaches of the regulations will constitute a criminal offence. Upon conviction, individuals may face fines of up to R1,000,000 or the value of the assets involved, whichever is higher, and/or imprisonment for up to five years.
