South Africa Extends Bitcoin Regulation Comment Period After Industry Backlash
South Africa’s National Treasury and the South African Reserve Bank have extended the deadline for public comments on the draft Capital Flow Management Regulations, 2026, from 18 May to 30 June 2026, following requests from stakeholders who needed more time to review the proposals. The extension was confirmed in a joint statement from both institutions.
The move came in response to a wave of public and media criticism. Broadly, the regulations aim to modernise how cross-border capital flows are managed by replacing the 1961 exchange control framework with a risk-based surveillance system, and for the first time, formally bring Bitcoin and other digital assets inside that framework.
What The Draft Regulations Propose
The draft rules would require holders of Bitcoin above a yet-to-be-defined threshold to disclose their holdings, and could mandate prior approval for cross-border transactions beyond those limits. Critics have raised concerns about privacy, constitutional rights, and the fact that all digital assets are grouped under a single definition, despite Bitcoin’s fundamentally different structure compared to centrally issued tokens and stablecoins.
VALR CEO Farzam Ehsani warned publicly that the draft rules risk reversing years of regulatory progress in the sector. Treasury and SARB have since clarified that the proposed framework is not intended to criminalise the possession of digital assets, and that any final rules will not be applied retroactively.
Cross-Border Framework Manual Still Coming
As part of the next phase, the National Treasury and SARB also indicated they will release a separate draft manual outlining a proposed cross-border Bitcoin and digital asset transaction framework for public consultation. The forthcoming manual is expected to be a key document for licensed service providers operating in South Africa.