South Africa’s Draft Crypto Rules Spark Alarm as Proposed Powers Raise Concerns Over Asset Seizure and Privacy

South Africa is facing growing scrutiny from the global cryptocurrency community after the release of a draft regulatory framework that could significantly reshape how digital assets are held, transferred, and controlled within the country. The proposed rules, introduced by National Treasury, have triggered a wave of concern among industry leaders, legal experts, and investors who warn that the measures could undermine innovation and drive capital out of the region.

At the center of the controversy is the Draft Capital Flow Management Regulations 2026, a sweeping proposal that seeks to modernize South Africa’s exchange…