CATASTROPHE Coalition Challenges South Africa’s Proposed Digital Asset Rules

A new coalition has launched a campaign against proposed South African regulations that could affect Bitcoin self-custody and cross-border digital asset transactions.

The CATASTROPHE Coalition South Africa Bitcoin regulation campaign brings together industry leaders, lawyers, advocates and other stakeholders calling for a more balanced regulatory framework.

CATASTROPHE stands for Crypto Asset Taskforce for Advancing Sound, Technology-Neutral Regulation for Opportunity, Prosperity and a Healthy Economy.

Why CATASTROPHE Is Opposing the Rules

The campaign follows proposed regulations from South Africa’s National Treasury and the South African Reserve Bank covering digital assets and cross-border activity.

The coalition argues that some of the proposals could restrict legitimate Bitcoin and digital asset use while pushing users towards offshore or peer-to-peer alternatives.

Its main concerns include:

• Protecting self-custody: Ensuring users can hold Bitcoin in private wallets and still interact with regulated platforms.
• Cross-border payments: Preventing restrictions that could make it harder for South African businesses to use digital assets internationally.
• Technology-neutral regulation: Applying similar rules to similar financial activities regardless of the technology used.
• Keeping activity regulated: Avoiding policies that could push users away from licensed local platforms.

The coalition has also criticised what it calls a “one-way door” for self-custody, where users may be able to withdraw digital assets to private wallets but face restrictions when sending them back to regulated South African platforms.

Why It Matters for Bitcoin Users

The proposed framework could directly affect how South Africans move Bitcoin between exchanges and self-custodial wallets.

It could also influence businesses using Bitcoin and other digital asset payment rails for international transactions.

CATASTROPHE says it supports regulation but wants rules that are proportionate, practical and supportive of innovation.

How to Support the Campaign

Individuals and businesses can participate by submitting public comments, sharing information about the proposed rules and supporting the coalition’s campaign.

More information, including campaign resources and submission details, is available at catastrophe.co.za.