South African Crypto Firms Halt R2.2 Billion in Deals

Digital-asset companies in South Africa have halted transactions valued at approximately R2.2 billion in response to proposed regulatory updates. The National Treasury and the South African Reserve Bank intend to bring cryptocurrencies under the nation's exchange-control regime by updating the Currency and Exchanges Act.

These proposed changes aim to monitor cross-border transactions, combat illicit financial flows, and minimize regulatory arbitrage. The paused deals include a private equity investment as well as transactions intended for small business capital formation and corporate treasury management.

Industry executives claim that input provided in April was ignored, despite the release of a draft manual for cross-border transactions. Government authorities maintain that the requirements are still in draft form and subject to refinement. Public submissions regarding the proposed regulations remain open until September 30.