The Reserve Bank (Sarb) stated that its position regarding stablecoins is not yet determined. This was announced in the central bank's initial response to a public campaign launched on Wednesday, September 9th, by South Africa's largest regulated crypto platforms against proposed restrictions on cross-border cryptocurrency transactions.
The central bank informed TechCentral that 'these are design requirements, and the national treasury and Sarb, together with other regulators, are still working on various aspects of crypto assets, including the approach to stablecoins.' It also noted that careful monitoring of both local and global events continues to inform the approach and regulatory response.
Stablecoins, which are crypto tokens pegged to a currency, typically the US dollar, are an area of commercial pressure. The design manual published by the Treasury and the Reserve Bank's Financial Surveillance Department in early August suggests that resident entities 'cannot engage in crypto asset transactions considered capital import or export,' thereby closing this avenue through licensed local providers.
The Reserve Bank also emphasized that nothing is final. The central bank notified that 'the period for public comments on the Crypto Asset Guidance project for cross-border activities is open until September 30, 2026.' Furthermore, the design manual and the draft Capital Outflow Management rules of 2026 remain subject to refinement after considering all public comments and stakeholder engagement.
The 'Catastrophe' Campaign
The campaign the bank responded to is called Catastrophe. It unites VALR, Luno, AltCoinTrader, and EasyEquities with academics, lawyers, and economists. The goal of this group is to object both to the ban on corporate cross-border operations, which are legal through the bank, and to the self-custody rule, which allows individuals to move assets from a regulated platform to a personal wallet but not back.
Critique of the Proposal
Christo de Wet, South Africa Country Manager at Luno, stated that the platform's concern is not with regulation itself, but with the direction of that regulation. According to him, in its current form, the manual 'risks undermining the progress made by South Africa in integrating digital assets into a controlled, progressive ecosystem.'
He described this coalition as a request for a different type of dialogue—'an invitation to the National Treasury and the Reserve Bank to strengthen their direct engagement with the industry on proposed changes and to consider implementing an alternative approach suggested by the coalition.' De Wet also reiterated the principle underpinning the coalition's argument, borrowed from the account of manager Lesetji Kganyago about the central bank's shift to activity-based regulation of the payment system, according to which rules follow the action, not the type of institution.
'Luno believes that equivalent economic activity should attract an equivalent regulatory treatment, regardless of the underlying technology. The current draft does not meet this standard,' he said.
Arl Lockston, Head of Crypto Business at EasyCrypto in EasyEquities, was more willing to acknowledge the authorities' concerns. He noted: 'We understand that South African regulators are grappling with real issues related to cross-border capital flows and law enforcement.' However, his objection concerned how the proposal classifies these issues. 'We believe the current structure mixes different problems. The real issue is not the crypto technology—but whether specific transactions pose a real regulatory risk. Local businesses receiving dollars via stablecoin from an international client are not circumventing control; they are using a faster channel for a legitimate transaction that is already reportable.'
The authorities' justification has not changed. When the Treasury first signaled this in February, it clearly outlined its concern: 'Since cryptocurrency payments are borderless, they present an opportunity to bypass exchange controls.' The design manual aims to stop arbitrage between entities conducting the same cross-border business under different rules.
Submissions close on September 30, after which the manual and the Capital Outflow Management rules, which will replace the Exchange Control regulations of 1961, will be sent for review. The coalition stated that it will disband upon achieving a favorable outcome.