Crypto industry players have welcomed the National Treasury and the South African Reserve Bank’s move to redraft their crypto asset regulations.

“Done right, South Africa can become the regulated gateway between Africa’s digital asset markets and global finance,” said Marius Reitz, GM for Africa at Luno, South Africa’s largest crypto exchange.

“Done wrong, the activity will simply move offshore and onto peer-to-peer channels, where it is harder to see and impossible to tax,” said Reitz.

This comes as finance minister Enoch Godongwana admitted that a “new approach” is needed for the rules.

The draft capital flow management regulations, published in April, and the subsequent draft crypto assets manual for cross-border…