EXPERT OPINION | Oversight Should Focus Where it Matters Most, Says MoneyBadger on the South Africa Capital Flow Management Draft Regulations

South African Bitcoin payments firm, MoneyBadger, has welcomed the release of draft Capital Flow Management Regulations, 2026 but raised concerns about aspects of the public consultation process and the scope of the proposed rules.

The company, a licensed Crypto Asset Service Provider(CASP), said it supports efforts by National Treasury to formalise a regulatory framework for crypto assets, particularly measures aimed at clarifying rules for cross-border transactions and reducing uncertainty for service providers.

However, MoneyBadger said inconsistencies in submission deadlines and contact details for the consultation process were creating confusion among stakeholders seeking to provide feedback.

It also noted that some elements of the draft lack clarity, including unspecified thresholds and implementation details, making it difficult for businesses and the public to fully assess the potential impact of the proposals.

The firm expressed broader concerns that parts of the draft regulations extend beyond their stated focus on cross-border capital flows. According to MoneyBadger, the current proposals could restrict peer-to-peer Bitcoin transactions above an unspecified value unless conducted through a licensed provider, and could limit merchants’ ability to accept Bitcoin payments directly above that threshold.

The draft rules also require individuals to declare all crypto asset holdings within 30 days, with no minimum threshold, and would restrict the transfer or sale of those assets without Treasury approval. MoneyBadger said it remains unclear whether such requirements would apply to assets already held in self-custody.

In addition, the company highlighted provisions that may allow authorities, banks or licensed providers to require individuals to convert crypto holdings into rand under certain circumstances, raising questions about user control over digital assets.

MoneyBadger urged Treasury to align the regulations more closely with a risk-based approach focused on high-impact cross-border transactions, warning that overly broad rules could unintentionally affect everyday crypto use by individuals and merchants.

The company said it is engaging with industry participants and legal advisors and intends to submit a formal response as part of the consultation process.

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