South Africa drafts ban on corporate cross-border stablecoin transfers, sparking industry outcry

South Africa's central bank and treasury have proposed rules that would prohibit companies from sending stablecoins abroad, prompting pushback from local crypto firms.

The South African Reserve Bank and National Treasury issued draft regulations that would ban corporate cross-border stablecoin transactions, categorising outgoing transfers as offshore capital flows subject to existing exchange-control limits. The rules also prevent inbound payments from private wallets, while personal crypto transfers remain permitted up to 2 million rand annually without clearance and up to 10 million rand with tax-authority approval.

VALR chief executive Farzam Ehsani warned that a strict prohibition could drive transactions underground or offshore, and Luno’s Africa-Europe general manager Marius Rietz argued the ban would leave South African firms out of step with the international ecosystem, hinting at legal action. Absa’s digital-assets head Rob Downes welcomed clearer rules but noted the ban would initially limit opportunities, expecting a phased implementation. The proposal arrives as other emerging markets, such as Nigeria, tighten crypto oversight, and regulators argue the measure prevents an uneven playing field between crypto and traditional finance.