Treasury backs down on crypto rules after ‘thousands’ of comments
- Finance Minister Enoch Godongwana stated that the National Treasury and Reserve Bank will rewrite draft rules for crypto asset movement after receiving thousands of comments.
- The new approach will shift from pre-approvals to assessing transactions for legitimacy and tax compliance.
- The Reserve Bank warned that crypto payments are borderless and could circumvent exchange controls, with nearly R63-billion moved from South African wallets to foreign wallets since 2019.
The proposed regulations reflect a cautious approach by South African authorities towards the crypto industry, yet they may stifle innovation and growth in a rapidly evolving sector. The balance between regulation and fostering a conducive environment for crypto businesses is crucial for the country's economic future.
