{"id":72846,"date":"2026-05-21T06:24:46","date_gmt":"2026-05-21T06:24:46","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/south-african-treasury-extends-crypto-rule-deadline-to-june-30-after-backlash\/"},"modified":"2026-05-21T06:24:46","modified_gmt":"2026-05-21T06:24:46","slug":"south-african-treasury-extends-crypto-rule-deadline-to-june-30-after-backlash","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/south-african-treasury-extends-crypto-rule-deadline-to-june-30-after-backlash\/","title":{"rendered":"South African Treasury Extends Crypto Rule Deadline to June 30 After Backlash"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">South Africa\u2019s National Treasury and SARB extended the capital-flow comment deadline to June 30, 2026.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">VALR CEO Farzam Ehsani warned the draft rules risk reversing years of regulatory progress in the sector.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Treasury will next publish a draft manual outlining which cross-border crypto transactions face controls.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Modernizing Exchange Controls<\/h2>\n<p>South Africa\u2019s National Treasury and the South African Reserve Bank have sought to calm growing concern in the <span>crypto<\/span> industry, saying proposed changes to the country\u2019s capital-flow regime are not intended to criminalize the possession of digital assets and will not apply retrospectively.<\/p>\n<p>The <a href=\"https:\/\/businesstech.co.za\/news\/government\/860651\/reserve-bank-and-treasury-respond-to-people-holding-crypto-assets-in-south-africa\/\" target=\"_blank\" rel=\"noopener noreferrer\">clarification<\/a> follows a wave of public criticism and media scrutiny triggered by the draft Capital Flow Management Regulations, which are open for public comment and form part of the first major overhaul of South Africa\u2019s exchange-control system since 1961. Treasury has extended the comment deadline from May 18 to June 30, 2026, after stakeholders requested more time.<\/p>\n<p>The draft regulations aim to modernize how cross-border financial flows are monitored by shifting from a pre-approval model to a risk-based surveillance framework. A key change is the formal inclusion of <span>crypto<\/span> assets within the exchange-control system \u2014 a move legal analysts say closes a long-standing gap in how value can be moved across borders.<\/p>\n<p>Legal experts at Cliffe Dekker Hofmeyr said <span>crypto<\/span> has long existed in an \u201cawkward space,\u201d widely used for cross-border transfers but not explicitly addressed in exchange-control rules. The draft regulations define <span>crypto<\/span> assets and bring them within scope, aligning with broader reforms such as classifying <span>crypto<\/span> as a financial product.<\/p>\n<p>\u201c <span>Crypto<\/span> is not being liberalized; it is being absorbed into the existing system,\u201d the firm said, noting that the inclusion means <span>crypto<\/span> can no longer be viewed as a workaround to traditional exchange controls.<\/p>\n<p>Despite the government\u2019s assurances, the draft has drawn sharp backlash from exchanges, academics, and advocacy groups who argue the proposal could have far-reaching consequences for ordinary users.<\/p>\n<p>Several media reports have highlighted concerns that the draft could, in practice, criminalize routine <span>crypto<\/span> activity, impose fines of up to about $60,270 (1 million South African rand), and allow prison terms of up to five years for violations. Critics also warned that the regulations could grant border officials broad search-and-seizure powers, including the ability to inspect phones for crypto-related apps at airports.<\/p>\n<h2>Industry Backlash and Penalties<\/h2>\n<p>Farzam Ehsani, CEO of VALR and one of the most vocal critics, <a href=\"https:\/\/news.bitcoin.com\/south-africa-crypto-draft-triggers-1m-rand-fine-warning-from-valr-ceo\/\">said<\/a> the draft risked reversing years of constructive engagement between regulators and the <span>crypto<\/span> sector. He warned that provisions such as Regulation 8, which allows for the \u201ccompulsory surrender\u201d of assets under certain circumstances, had fueled fears that <span>crypto<\/span> holders could be forced to sell their assets to the state or to authorized foreign-exchange dealers.<\/p>\n<p>Treasury and the SARB rejected those interpretations, saying concerns about forced disposals of <span>crypto<\/span>, <span>gold<\/span>, or foreign currency are \u201cmisplaced.\u201d Any such requirement, they said, would arise only in limited circumstances, such as when an offense has been committed.<\/p>\n<p>One of the most persistent concerns raised by traders and legal analysts is the lack of clarity on how the draft will treat individuals who already hold <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> assets. Some experts have warned that these users could face new restrictions on how they buy or sell <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> going forward, given the absence of guidance on thresholds, reporting requirements, and the role of authorized intermediaries.<\/p>\n<p>Treasury said stakeholder input is being considered and emphasized that the draft does not seek to criminalize ownership or impose retrospective obligations. As part of the next phase, Treasury will publish a draft manual on cross-border <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> asset transactions for public comment. The manual will outline activities that qualify as cross-border <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> transactions and which of those fall under capital-flow controls.<\/p>\n<p>Officials said the <a href=\"https:\/\/news.bitcoin.com\/south-africa-moves-to-bring-cryptocurrencies-under-capital-flow-controls\/\">framework<\/a> is intended to strengthen the state\u2019s ability to detect and disrupt illicit financial flows while complementing oversight by the Financial Intelligence Centre and the Financial Sector Conduct Authority. They also noted that years of exemptions and relaxations have allowed South Africans to legitimately externalize capital and hold foreign assets in various forms.<\/p>\n<p>Treasury and the SARB will review all submissions after the June 30 deadline and make revisions where appropriate.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/south-african-treasury-extends-crypto-rule-deadline-to-june-30-after-backlash\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways South Africa\u2019s National Treasury and SARB extended the capital-flow comment deadline to June 30, 2026. VALR CEO Farzam Ehsani warned the draft rules risk reversing years of regulatory progress in the sector. Treasury will next publish a draft manual outlining which cross-border crypto transactions face controls. [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":72847,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72846"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=72846"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72846\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/72847"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=72846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=72846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=72846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}