A new taskforce representing regulated crypto platforms and members of the public, is trying to get National Treasury and the South African Reserve Bank to reconsider their proposed draft regulations.
Catastrophe (Crypto Asset Taskforce for Advancing Sound, Technology-Neutral Regulation for Opportunity, Prosperity and a Healthy Economy) has launched a national campaign to highlight what it calls unintended adverse consequences for South Africa if newly proposed cross-border regulations become law.
The coalition brings together some regulated Crypto Asset Service Providers (CASPs) and other organisations, including VALR, Luno, AltCoinTrader, and EasyEquities as well as members of the public.
The group believes that restrictive draft rules will harm domestic enterprises and jobs, slow economic participation, and isolate South Africa from the global digital economy.
Two critical issues highlighted
The draft framework published by South Africa’s National Treasury and the South African Reserve Bank introduces two major restrictions:
- Blocking Cross-Border Crypto Payments by Businesses: South African companies would be prohibited from using regulated crypto rails for otherwise legitimate international transactions, putting local businesses at a severe competitive disadvantage globally.
- Restricting Individual Self-Custody: While individuals can withdraw assets from a local CASP to a personal self-hosted wallet, transferring those assets back into a regulated South African platform would be designated as “non-permissible”. This creates an arbitrary one-way door out of the domestic regulated ecosystem, and would force legitimate activity to go underground or overseas.
According to the Catastrophe website, thousands of jobs in South Africa could be threatened, millions of South African crypto holders would be adversely impacted, and billions of tax revenues to SARS could disappear if these draft regulations are implemented as currently drafted.
Alternative approach
As an alternative, Catastrophe proposes that South Africa should regulate equivalent cross-border economic activity consistently. Banks, Authorised Dealers and Authorised Crypto Asset Service Providers may use different technologies, however, equivalent activities should be subject to equivalent permissions, reporting obligations and regulatory outcomes.
At the MTN Group Fintech 2026 Summit last week, SARB Governor Lesetja Kganyago said: “The principle is straightforward: similar payment activities should be subject to similar regulatory expectations, whether they are performed by a bank or a fintech.”
The Catastrophe coalition emphasises that failing to apply the same principle to cross-border payments would represent a departure from sound, technology-neutral regulation and would be inconsistent with the principle articulated by the Governor himself.
In essence, Catastrophe calls for a level playing field for cross-border payments without discriminating against any particular technology. Regulation should be fair and designed in the interests of South African consumers and businesses, promoting competition, innovation and choice.
Disconnect from global financial progress
These proposed regulations come at a time when stablecoins and digital asset rails are expanding exponentially worldwide, delivering faster transaction speeds, lower cross-border costs, and greater transparency – all benefits that would accrue to South African individuals and businesses.
Global financial institutions are making multi-billion-dollar investments into stablecoin infrastructure. The payment giant, Stripe, and the global card network, Mastercard, acquired stablecoin businesses for $1,1-billion and $1,8-billion respectively last year. Major blockchain settlement initiatives by Visa and global banks have also been announced.
While the rest of the world integrates modern digital payment rails, the current draft regulations threaten to prevent South African businesses and residents from benefiting from these global advances.
According to the campaign, billions of rand in foreign investment into South Africa have already been put on hold pending the outcome of these draft regulations.
Call to action
Catastrophe advocates for a framework anchored in technology neutrality. Equivalent economic activities must receive equivalent regulatory treatment regardless of whether traditional banking infrastructure or blockchain technology is used.
The coalition is inviting people to endorse the campaign at catastrophe.co.za before the public comment period closes on 30 September 2026.