Brief
South African stablecoin firms praise Treasury’s shift on crypto border rules
Issuers say the draft revision should treat stablecoins as payments and drop bans on cross‑border crypto transfers.
By Felo News Desk · Published
South Africa’s finance minister Enoch Godongwana told parliament on 22 October that the Treasury will rewrite its draft capital‑flow regulations for crypto assets after receiving thousands of public comments. The minister said the government will move from a pre‑approval regime to assessing transactions for legitimacy and tax compliance, following Financial Stability Board guidance.
What happened
The Treasury’s original draft would have treated all crypto payments as capital flows, requiring written declarations and giving officials powers to seize assets. In response to industry feedback, the minister announced a shift to a legitimacy‑check approach, though no date was given for the second draft and specific provisions were not disclosed.
What the reports add
TechCentral reported that stablecoin co‑founder Simon Dingle of Zarp welcomed the change, calling it evidence that the Treasury and the Reserve Bank listened to the “thousands of submissions”. Dingle argued that a fully reserve‑backed rand stablecoin does not constitute capital leaving the country and that treating every stablecoin payment as a capital flow “never made sense”. He also urged the removal of a ban on companies moving crypto across borders, saying business‑to‑business payments are where stablecoins add the most value.
Gideon Greaves, managing director of Super Group’s ZAR Supercoin, echoed the sentiment, describing the legitimacy‑check model as “a positive step”. He said a licensed, rand‑backed stablecoin could function as a transparent local payment, with the underlying rand staying in a South African bank account.
Wiehann Olivier of Forvis Mazars added that regulation should target actual risk rather than prevent legitimate participation before it begins.
What was said
"A clear sign that treasury and the Reserve Bank listened to the thousands of submissions on the draft rules," Simon Dingle told TechCentral.
"Treating every stablecoin payment as a capital flow, when the same payment through a bank wouldn’t be, never made sense," Dingle added.
Gideon Greaves said, "A licensed, rand‑backed stablecoin can work as a transparent local payment. When two South Africans transact in ZARsc, the rand behind the coin stays in a South African bank account."
Wiehann Olivier noted, "Regulation should identify and address actual risk rather than prevent legitimate participation before it begins."
How it came about
The Treasury’s rewrite follows a public‑comment period that attracted thousands of responses, as reported in Felo’s earlier coverage on 21 October. Earlier drafts had sparked criticism from crypto firms and exchanges, who warned that treating stablecoins as capital flows could push activity offshore.
Key facts
- Finance Minister Enoch Godongwana announced a shift from pre‑approval to legitimacy checks for crypto transactions. (techcentral.co.za)
- Stablecoin issuers Zarp and ZAR Supercoin welcomed the change, saying it distinguishes payments from capital flows. (techcentral.co.za)
- The Treasury has not set a date for the revised second draft of the crypto capital‑flow rules. (techcentral.co.za)
Sources
- [1] techcentral.co.za — originally reported as “Rand stablecoin issuers welcome treasury's crypto rethink”
