{"id":76570,"date":"2026-08-09T09:49:05","date_gmt":"2026-08-09T09:49:05","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/valrs-ehsani-warns-crypto-curbs-could-reduce-regulatory-oversight\/"},"modified":"2026-08-09T09:49:05","modified_gmt":"2026-08-09T09:49:05","slug":"valrs-ehsani-warns-crypto-curbs-could-reduce-regulatory-oversight","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/valrs-ehsani-warns-crypto-curbs-could-reduce-regulatory-oversight\/","title":{"rendered":"VALR\u2019s Ehsani Warns Crypto Curbs Could Reduce Regulatory Oversight"},"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\">National Treasury and SARB release draft rules governing cross-border crypto transfers.<\/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 that banning corporate crypto flows could push market volume offshore.<\/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\">Stakeholders and interested industry parties have until September 30 to submit public feedback.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Corporate Limits and Illicit Flow Risks<\/h2>\n<p>South Africa\u2019s new proposed cross-border cryptocurrency framework risks severely damaging the domestic digital asset industry and driving financial activity underground unless key provisions are substantially revised, according to Farzam Ehsani, co-founder and chief executive officer of VALR.<\/p>\n<p>Commenting on <a href=\"https:\/\/www.reuters.com\/world\/africa\/south-africa-issues-draft-rules-cross-border-crypto-2026-08-03\/\" target=\"_blank\" rel=\"noopener noreferrer\">the joint draft crypto asset manual<\/a> released by the National Treasury and the South African Reserve Bank (SARB), Ehsani cautioned that attempting to apply <a href=\"https:\/\/news.bitcoin.com\/south-africa-moves-to-bring-cryptocurrencies-under-capital-flow-controls\/\">decades-old capital controls<\/a> to modern technology threatens employment, local investment, and business innovation.<\/p>\n<p>While acknowledging positive adjustments in the draft\u2014specifically that a reportable event is triggered upon withdrawing funds from a crypto asset service provider (CASP) rather than at the initial asset purchase\u2014Ehsani said the proposals remain prejudicial to licensed local operators.<\/p>\n<p>\u201cSouth Africa would be better served by abolishing exchange controls altogether while preserving appropriate reporting, transparency and regulatory surveillance, rather than attempting to retrofit a half-century-old regulatory regime onto modern technology and the digital economy,\u201d Ehsani told Bitcoin.com News.<\/p>\n<p>Under the draft rules, individual residents are permitted to transfer crypto offshore within existing foreign currency allowances. However, the framework restricts corporate entities from <a href=\"https:\/\/news.bitcoin.com\/south-african-reserve-bank-flags-crypto-and-stablecoins-as-structural-risk\/\">conducting cross-border crypto transactions<\/a> and classifies several inbound transfers originating from private, non-custodial self-custody wallets as non-permissible for local CASPs.<\/p>\n<p>Ehsani argued that these restrictions create perverse incentives for businesses and retail users alike. By blocking legitimate corporate transactions\u2014particularly cross-border stablecoin payments that offer faster, cheaper, and more transparent settlement than legacy banking networks\u2014the rules will undermine the regulatory oversight authorities are seeking.<\/p>\n<p>\u201cBy prohibiting legitimate corporate activity through regulated providers, the proposed framework is likely to drive transactions underground or offshore,\u201d Ehsani said. \u201cThis would reduce the very visibility and surveillance that National Treasury and the SARB seek to achieve, while undermining employment, tax revenue, investment, innovation and business formation.\u201d<\/p>\n<p>Ehsani also highlighted concerns regarding self-custody wallets, noting that treating transactions from non-custodial wallets as non-permissible is neither practical nor sensible. He warned that such a restriction will push South African users toward foreign, unregulated exchanges rather than local, licensed platforms, conflicting with the central bank\u2019s objective of monitoring capital within the country.<\/p>\n<p>\u201cIf South Africa chooses to retain capital controls, it should at least apply them on a principled, fair and technology-neutral basis,\u201d Ehsani said. \u201cRegulation should govern the movement of value and manage the associated risks; it should not dictate which technologies individuals and businesses can use.\u201d<\/p>\n<p>The VALR co\u2011founder\u2019s comments come nearly a month after fellow South African exchange Luno <a href=\"https:\/\/news.bitcoin.com\/luno-pushes-south-africa-to-rewrite-crypto-rules-through-parliament-not-proclamation\/\">formally challenged the proposed capital\u2011flow rules<\/a>. As reported by Bitcoin.com News, Luno \u2014 which has urged parliament to rewrite the framework \u2014 argues that the government\u2019s current approach risks driving crypto activity underground and outside the reach of domestic regulators and tax authorities.<\/p>\n<p>The National Treasury and the SARB have opened the draft crypto asset manual for public comment through Sept. 30. Authorities emphasized that the draft guidelines remain subject to refinement following stakeholder engagement before final implementation.<\/p>\n<p>Ehsani expressed optimism that the consultation process would yield a more balanced regime. \u201cWe face a fundamental choice in South Africa: whether we are serious about overcoming our economic challenges, unlocking growth and becoming a globally competitive force, or whether our frameworks undermine those ambitions,\u201d he said.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/valrs-ehsani-warns-crypto-curbs-could-reduce-regulatory-oversight\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways National Treasury and SARB release draft rules governing cross-border crypto transfers. VALR CEO Farzam Ehsani warned that banning corporate crypto flows could push market volume offshore. Stakeholders and interested industry parties have until September 30 to submit public feedback. Corporate Limits and Illicit Flow Risks South [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":76571,"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\/76570"}],"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=76570"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/76570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/76571"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=76570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=76570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=76570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}