South Africa is preparing a new regulatory framework for cross-border cryptocurrency transactions, according to Finance Minister Enoch Godongwana. The South African Reserve Bank will release the framework this year, focusing on cross-border crypto asset transfers.

The move comes after a High Court ruling left cryptocurrencies exempt from exchange control regulations. Instead of a broad exemption framework for exchanges, authorities aim to regulate the activities of crypto asset service providers involved in moving value across borders.

The framework will set conditions, administrative duties, and reporting requirements to curb illicit flows and prevent regulatory loopholes.

SARB works closely with the National Treasury, the Financial Sector Conduct Authority, and other financial bodies to finalise the rules.

Officials say the goal is to align South Africa's exchange control laws with the realities of the digital asset market while addressing the risks identified by the Intergovernmental Fintech Working Group.