Finance minister Enoch Godongwana.
MTBPS 2026: Finance minister Enoch Godongwana has conceded that a “different approach” will be required for crypto regulations.
This, after National Treasury received thousands of comments following publication of the Draft Capital Flow Management Regulations, which included the cross-border treatment of crypto assets.
The draft regulations, published in April, represent a fundamental overhaul of South Africa’s exchange control framework, moving away from the pre-approval model, towards a risk-based system focused on reporting, surveillance of high-impact and high-risk cross-border transactions and combating illicit financial flows.
Breaches could result in fines of up to R1 million, imprisonment of up to five years, or both.
In August, Treasury and the South African Reserve Bank (SARB) invited interested parties to submit written comments on the draft Crypto Assets Manual for cross-border activities.
Tabling the 2026 Medium-Term Budget Policy Statement (MTBPS) at Cape Town City Hall this afternoon, Godongwana said the comments received make it “clear” that a different approach is needed for the amendments.
“We must aim to shift away from pre-approvals. Instead, we must assess transactions for legitimacy and tax compliance,” he said. “Consultations will commence, with the aim of publishing a revised second draft of the regulations for further input.”
In his budget in February, Godongwana told members of Parliament that crypto assets will be included in the capital flows management framework.
“Crypto assets will now be governed in the cross-border movement of capital framework, which will be complementary to regulations already in place to prevent the use of crypto assets to launder money and commit fraud,” he said at the time.
The February 2026 budget review document added that Treasury’s move will complement regulation by the Financial Sector Conduct Authority, which officially declared crypto assets (like Bitcoin and Ethereum) to be “financial products” under the Financial Advisory and Intermediary Services Act.
Similar regulatory action has been taken by the Financial Intelligence Centre, which in 2025 designated crypto asset service providers as accountable institutions subject to supervision, including reporting, registration and enforcement, according to the document.