The draft Manual, published for public comment on 3 August 2026, provides clarity on the point at which crypto asset transactions are regarded as cross-border in terms of the draft Regulations. National Treasury says clarifying the trigger point ensures that crypto asset transactions giving rise to cross-border flows are consistently identified, appropriately reported and effectively monitored.
The proposals contained in the Manual significantly strengthen the SARB’s oversight role in the crypto space. It explains that the Minister of Finance has delegated National Treasury’s power under the Exchange Control Regulations to designated SARB officials, including the Head of the Financial Surveillance Department (FinSurv). This includes the responsibility for authorising, regulating and where necessary, prohibiting the import and/or export of crypto assets to and from South Africa.
This approach was illustrated in recent litigation involving the export of Bitcoin. Acting under the Exchange Control Regulations, the Deputy Governor declared forfeited to the state millions in Bitcoin assets on the basis that moving the money and cryptocurrencies offshore without regulatory permission is illegal and in contravention of the regulations.
Formalising SARB’s Restrictive Approach in Regulation
In a joint media statement, Treasury and SARB said the draft Manual should be read together with the draft Capital Flow Management Regulations 2026, released in April 2026. Although still in draft form, it is part of a broader effort to strengthen the oversight of cross-border financial activities and to address emerging risks associated with crypto assets.
The draft Manual provides practical guidance on the implementation of the draft Regulations, including the application and adjudication process to conduct the business of an authorised CASP, the permissions and conditions applicable to cross-border crypto asset transactions, details of related administrative responsibilities, and reporting requirements to FinSurv.
Interested parties have until 30 September 2026 to submit comments on the draft Manual.
SARS and SARB Are Increasingly Working in Tandem
Taxpayers have long been acutely aware of SARS’s increased scrutiny of crypto activities potentially giving rise to tax liabilities, without giving the SARB and South Africa’s exchange control framework a second thought. That position is rapidly changing.
SARS already has extensive visibility over offshore financial activities through the Automatic Exchange of Information (AEOI) which facilitates the exchange of information between tax authorities, crypto platforms and financial institutions, and now incorporates the Crypto-Asset Reporting Framework (CARF) for crypto assets. This gives SARS even greater access to information relating to offshore crypto holdings and transactions.
The introduction of the draft Crypto Asset Manual complements these international tax transparency initiatives. In teaming up with SARB in the oversight of cross-border crypto flows, SARS is doubling down on efforts to curb tax avoidance and evasion.
SARS’s Strong Stance on Arbitrage
It is also now on record that SARS is taking a strong stance or arbitrage, indicating in crypto audits that it does not recognise arbitrage.
Arbitrage is a trading strategy that takes advantage of price differences for the same crypto asset across different exchanges. An arbitrage trader would buy at a low price on one exchange and sell for a higher price on another exchange, profiting from the discrepancy in prices. The activity is inherently profit-driven.
Arbitrage can involve cross-border transfers. Where crypto assets are transferred offshore without the necessary exchange control approval, taxpayers may face both tax scrutiny and potential exchange control consequences, including forfeiture of said funds per the below excerpt from a SARB Notice of Contravention:
The draft Manual clearly identifies the point at which a crypto asset transaction is regarded as cross-border. The trigger point arises when crypto assets are transferred between a domestic authorised CASP and an offshore CASP, or from a domestic authorised CASP to a non-custodial wallet, resulting in a cross-border inflow or outflow that must be reported to FinSurv.
Looking Ahead
The publication of the draft Manual follows South Africa’s implementation of CARF from 1 March 2026.
Although the Crypto Asset draft Manual does not itself have statutory force, it will have the practical effect of law by setting out the permissions, conditions and exemptions that apply to cross-border crypto asset transactions under South Africa’s capital flow management framework.
The introduction to the draft Manual warns that FinSurv views contraventions of the draft Regulations as well as any actions to circumvent the permissions and conditions contained in the Crypto Asset Manual and/or any directive it issued, in a very serious light.
For South Africans involved in crypto transactions or holding digital assets this suggests increased scrutiny and enhanced information sharing, emphasising the necessity for tax as well as exchange control compliance.
