Frank Leonette, founder of South African crypto exchange Afridax, said National Treasury's draft Capital Flow Management Regulations would place crypto assets firmly within the country's exchange control regime and make licensed platforms the only legal route for significant crypto transactions, in remarks to ITWeb published on 22 April 2026.
Treasury published the draft regulations for public comment in the Government Gazette on 17 April 2026. They would replace the Exchange Control Regulations of 1961 and, according to Treasury, shift towards fewer transaction pre-approvals, with a focus on reporting, the surveillance of high-impact and high-risk cross-border transactions and the combating of illicit financial flows.
Under the draft, crypto assets are explicitly classified as capital. Individuals and firms that are not authorised crypto asset service providers would be prohibited from transacting in crypto assets above a yet-to-be-determined threshold unless they do so through licensed intermediaries or obtain permission. The export of crypto assets from South Africa without approval would be prohibited, and residents who acquire foreign currency or crypto assets above the threshold would have to declare them to Treasury within 30 days.
LICENSED EXCHANGES AS GATEWAY
Leonette said the proposal introduces a new class of regulated entity, the authorised crypto asset service provider, effectively positioning licensed exchanges as the gateway for large transactions. "Crucially, cross-border crypto transfers would require approval, aligning digital assets with traditional foreign exchange controls," he said.
"The move signals a decisive shift – from crypto as a decentralised financial alternative, to crypto as a regulated channel for capital movement," Leonette said. He added that while this could strengthen licensed exchanges and formalise the industry, it raised questions about the future of self-custody, peer-to-peer trading and financial privacy. He also pointed to the draft's adjustable thresholds, which he said regulators could change at any time without passing a new law.
Leonette said Afridax, which received its licence from the Financial Sector Conduct Authority in November 2024, had been built licence-first and compliance-first, but that substantial structural changes would be needed to adapt to the new rules. He called on the industry to present a unified voice against the proposed private wallet controls. "Lack of disclosure on thresholds is confusing and needs to be workable for today's financial landscape," he said.