The National Treasury and the South African Reserve Bank (SARB) have published the draft Crypto Assets Manual for cross-border activities for comment.

The institutions had published the draft Capital Flow Management Regulations 2026 for public comment on April 17.

The draft manual should be read together with the draft regulations as part of a broader effort to strengthen the oversight of cross-border financial activities and to address emerging risks associated with crypto assets, Treasury and the SARB advise.

The proposed regulatory measures seek to minimise the risk of regulatory arbitrage between regulated entities conducting cross-border activities, and to enhance the ability of the Financial Surveillance Department (FinSurv) to detect, deter and disrupt illicit financial flows, they add.

These measures will complement the existing regulatory oversight of crypto asset activities by sector regulators the Financial Sector Conduct Authority, the Financial Intelligence Centre and South African Revenue Service.

Specifically, the draft manual provides practical guidance on the implementation of the draft regulations regarding cross-border crypto asset transactions, in particular the application and adjudication process to conduct the business of an Authorised Crypto Asset Service Provider (CASP), the permissions and conditions applicable to cross-border crypto asset transactions, details of related administrative responsibilities and reporting requirements to FinSurv.

The draft manual provides clarity on the point at which crypto asset transactions are regarded as cross-border in terms of the draft regulations. 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.

This means that only individuals, at this stage, will be allowed to externalise crypto assets through authorised CASPs in terms of their single discretionary allowance or foreign capital allowance.

Providing the trigger point ensures that crypto asset transactions giving rise to cross-border flows are consistently identified, appropriately reported and effectively monitored.

The SARB has adopted an activity-based approach following research, testing and assessments of the benefits and risks, the joint statement says.

At this stage, this proposed approach neither distinguishes between different types of crypto assets, nor does it declare crypto assets an official currency in South Africa.

The SARB is still undertaking research and consultations on other various aspects of crypto assets and both local and global developments will be tracked closely to make appropriate future enhancements to the draft manual.

On May 15, Treasury and the SARB issued a joint statement that addressed, among other matters, public concerns regarding the treatment, possession and trading of crypto assets, including the potential regulation of cross-border crypto asset transactions.

This joint statement had also said that a separate cross-border crypto asset framework, in the form of a draft manual, would be released for public comment to complement the draft regulations.

However, comments received on the draft regulations during the public consultation process are currently being considered.

Owing to the release timing and the volume of the comments, this draft manual has not yet taken into consideration the inputs already submitted in relation to the draft regulations.

The draft regulations and draft manual remain subject to refinement, following the consideration of all public comments and stakeholder engagements, the institutions say.