MoneyBadger Statement on draft Capital Flow Management Regulations
[Cape Town] 27 April 2026 - MoneyBadger notes the publication of the draft Capital Flow Management Regulations on 17 April and welcomes the opportunity to participate in the public consultation process.
As a licensed Crypto Asset Service Provider, we work with merchants and partners across South Africa, enabling crypto transactions across essential categories such as food, fuel, electricity, and airtime.
MoneyBadger was founded to enable the practical use of Bitcoin as a form of money, particularly in environments where access to traditional financial systems is limited. Through our work, we have seen growing real-world adoption, with individuals and communities increasingly using Bitcoin for day-to-day transactions. This continues to shape our view that digital assets can play a meaningful role in improving financial access and efficiency.
Earlier this year, we welcomed National Treasury’s commitment to formalising a crypto asset framework, particularly in enabling clearer rules for cross-border payments and reducing regulatory uncertainty for service providers. This signalled a constructive path toward integrating digital assets into the financial system in a practical and responsible way.
Against that backdrop, it is important that the current draft regulations and consultation process provide sufficient clarity and consistency to allow stakeholders to engage meaningfully and align with those broader objectives.
Given the scale and potential impact of these proposals, we encourage businesses, industry participants, and members of the public to review the draft regulations, available via National Treasury here and to participate in the consultation process.
Our immediate concern relates to the public participation process. There appears to be inconsistency in the published submission deadlines and email addresses, creating uncertainty for stakeholders seeking to respond appropriately. Certain elements of the draft also refer to thresholds and implementation details that have not yet been clearly defined, making it difficult for businesses and the public to fully assess the potential impact and provide informed input.
A more substantive concern is that several parts of the draft go further than managing cross-border flows, even though Treasury has been clear that the framework is meant to focus on cross-border activity using a risk-based approach targeted at high-impact transactions.
In its current form, two individuals would not be allowed to buy or sell Bitcoin from each other above a certain value, and a shop owner would not be able to accept Bitcoin directly as payment above that value, unless the transaction goes through a licensed crypto provider. The value at which this takes effect has not yet been set, so neither everyday users nor merchants currently know where ordinary use ends and a contravention begins.
The draft also requires every person in South Africa to declare any crypto asset they hold within 30 days, with no minimum threshold, and restricts the ability to sell or transfer those assets thereafter without Treasury’s permission. It is also unclear whether this requirement applies to crypto already held in self-custody when the regulations take effect, a gap that should be resolved before implementation.
Treasury, a bank or a licensed crypto provider may, in certain circumstances, require individuals to convert their crypto holdings into Rand, which introduces uncertainty around how and when individuals can access or retain control over their assets.
We would encourage Treasury to align these provisions more closely with the cross-border, risk-based focus of the framework, and to ensure that ordinary use of crypto between individuals or in everyday commerce is not unintentionally caught, so that oversight stays focused where it matters most, without creating unnecessary friction for everyday holders, traders and merchants who are an important part of South Africa’s adoption story.
Given the significance of these proposals, sufficient time should be provided for stakeholders to review the draft, seek appropriate guidance, and prepare considered submissions.
MoneyBadger is engaging with industry participants and legal advisors as part of its review process, with the aim of submitting a considered and informed response.
We remain committed to engaging constructively with regulators and contributing to a clear, transparent, and effective regulatory environment that supports innovation, broadens financial access, and benefits South Africa’s economy.
