South Africa’s Finance Minister, Enoch Godongwana, has announced that the South African Reserve Bank (SARB) will publish a new framework governing cross-border cryptocurrency transactions later this year, rather than drafting a broad exchange-control exemption for crypto assets. The minister’s comment, made in an official communication following a Pretoria High Court ruling concerning the status of cryptocurrency, signals a shift toward more structured oversight, allowing digital assets to be accommodated within financial controls where needed.
Looking east, Kenya’s crypto ecosystem tells a contrasting but equally compelling story. The country is advancing the Virtual Asset Service Providers (VASP) Bill, proposing a five-agency oversight mechanism including the Central Bank, Capital Markets Authority, Competition Authority, Communications Authority, and Data Protection Commissioner. This move positions Kenya as a potential African crypto hub, keen to balance innovation with accountability. However, critics warn that the proposed 1.5 % crypto transaction tax could undermine this ambition, increasing costs for everyday users and risking a drain on fintech talent.
The announcement by Minister Godongwana connects clearly with Kenya’s approach, illustrating a continent grappling with how to regulate crypto sensibly. South Africa’s focus on cross-border controls, rather than blanket tax exemptions, points to cautious inclusion. Kenya’s multi-agency model, by contrast, emphasises robust licensing and consumer safeguards, also responding directly to challenges of transparency and illicit flows.
Godongwana’s address did not name a specific event. Still, it follows a heightened legal and policy environment, including the court decision that cryptocurrency is not considered money, prompting the SARB to seek clarity without dismantling emerging asset classes.
Together, these developments suggest that Africa is entering a new phase where crypto transcends youthful hype and becomes subject to careful integration into formal financial systems. South Africa will soon outline precise mechanisms for managing cross-border crypto activity. At the same time, Kenya advances toward creating a unified, multi-agency crypto regulatory body, which is an essential step toward building a trustworthy, inclusive crypto future for the continent.
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