Key Takeaways:

• National Treasury draft replaces 1961 rules with 2026 digital asset controls despite Sidley’s objections.
• VALR CEO Ehsani warns of a 1 million rand fine as 1961-era logic threatens to drive crypto investment away.
• A foundation may be formed in 2026 to challenge the Treasury’s lack of clarity on crypto surrender thresholds.

An Outdated Framework

A controversial proposal by the South African National Treasury to overhaul capital flow regulations has sparked a sharp backlash from financial industry leaders, who warn the move could criminalize routine digital asset ownership and trigger a mass exodus of tech investment.

In recent formal submissions, critics of the proposals — including Steven Sidley, a prominent…