CAPE TOWN, South Africa — 14 August 2026 — South Africa’s proposed crypto rules could change how some cross-border remittances are settled across Southern Africa, without requiring customers to buy, hold or manage cryptocurrency themselves.
The draft Crypto Asset Manual, published by South Africa’s National Treasury and the South African Reserve Bank (SARB) on 3 August for public comment, would allow authorised providers to use crypto assets to settle certain remittance transactions with foreign payout partners.
Under the proposed model, customers would continue to pay the provider in South African rand. The crypto transaction would take place in the background between authorised providers, meaning the person sending money would not need to own or directly use cryptocurrency.
The proposal sets a maximum of ZAR 5,000 per transaction per day, with a monthly limit of ZAR 25,000 per applicant.
The rules are still in draft form and not every remittance would qualify.
Why the ZAR 5,000 Limit Matters
The proposed limit is significant because it is higher than the value of many ordinary formal remittance transactions in Southern Africa.
Research by FinMark Trust found that many transfers in the region’s largest formal remittance markets were between ZAR 500 and ZAR 1,899. In 2024, more than ZAR 4.5 billion was sent in transactions worth between ZAR 1,100 and ZAR 1,299.
This suggests that the proposed ceiling could cover a substantial portion of the smaller payments already being made by individuals sending money across borders.
However, the ZAR 5,000 limit does not mean that all transfers below that amount would automatically be eligible. The draft framework imposes conditions on the type of transaction, the participants and the countries involved.
The broader market is significant. Formal remittance outflows from South Africa to other Southern African Development Community (SADC) countries increased from just under ZAR 6 billion and 4.8 million transactions in 2016 to more than ZAR 19 billion and 15.7 million transactions in 2024, according to FinMark Trust data based on SARB Balance of Payments figures.
The proposed crypto settlement mechanism would apply to only a portion of that market.
Crypto Would Operate Behind the Scenes
For consumers, one of the most important aspects of the proposal is that they would not necessarily interact with crypto at all.
A customer could pay an authorised remittance provider in rand. The provider could then use a crypto asset to settle with a foreign payout partner, who would ultimately make the payment to the recipient.
David Precious, Senior Market Analyst at EBC Financial Group, said the approach could make crypto effectively invisible to the customer.
“People are already sending much smaller amounts across the region, so the ZAR 5,000 ceiling could cover the kinds of payments that are already common in the remittance market,” Precious said.
“A sender could pay in rand, while the authorised provider deals with the crypto settlement in the background. The customer would not need to buy or manage crypto.”
The commercial question, however, is whether this alternative settlement mechanism actually improves the service.
For people sending money across borders, the most important factors are likely to remain the fee, exchange rate, amount received and delivery time.
Crypto infrastructure could potentially reduce settlement costs or speed up transactions, but those benefits would only matter to consumers if providers pass them through.
South Africa’s Proposal Comes as Regional Payments Change
The proposed crypto settlement route is emerging alongside broader changes in Southern Africa’s conventional payment infrastructure.
On 27 July, SARB announced that the Angolan kwanza had become the second settlement currency in the SADC real-time gross settlement system, known as SADC-RTGS.
The system had used the South African rand as its settlement currency since launching in 2013. SARB said the addition of the kwanza supports efforts to reduce costs, increase speed and improve efficiency in cross-border payments.
SADC-RTGS and the proposed crypto remittance mechanism are separate initiatives. SADC-RTGS does not use cryptocurrency, while the draft Crypto Asset Manual would allow crypto settlement between specifically authorised providers for certain remittance transactions.
Together, however, the developments illustrate the broader effort to make cross-border payments in Southern Africa more efficient.
A Major Limitation: Some Countries Are Excluded
The proposed framework would not apply uniformly across the region.
The draft rules state that authorised providers may not enter into crypto transactions with residents of Lesotho, Namibia or Eswatini, the other members of the Common Monetary Area alongside South Africa.
The exclusion of Lesotho is particularly significant given the scale of remittances between the two countries.
FinMark Trust identifies Zimbabwe, Lesotho, Malawi and Mozambique as the four largest formal remittance destinations from South Africa, together accounting for nearly 90% of formal SADC remittances.
As a result, one of the region’s largest remittance corridors would remain outside the proposed crypto settlement route.
What the Rules Could Mean for Consumers
The proposed changes do not mean that South Africans will suddenly start sending cryptocurrency to relatives across the region.
Instead, the potential change is in the infrastructure behind the transaction.
If authorised providers can use crypto settlement to reduce costs or speed up payments, customers could benefit without having to understand or manage the underlying technology.
But regulation alone does not guarantee cheaper or faster transfers.
“Crypto may give providers another way to settle these payments, but the benefit only becomes real if customers see an improvement in cost, speed or reliability,” Precious said.
That makes the eventual pricing and service offered by authorised providers more important than the technology itself.
For consumers, the key question will remain straightforward: how much does it cost to send money, how much does the recipient receive and how quickly does it arrive?
South Africa’s Crypto Framework Is Still Developing
The draft Crypto Asset Manual remains subject to public comment, meaning the proposed framework could change before it becomes final.
For the remittance market, however, the proposal points to a broader shift in how digital assets could be used within regulated financial infrastructure.
Rather than requiring consumers to become cryptocurrency users, the model could allow crypto to function as a settlement tool between financial service providers.
That distinction could become increasingly important as Southern Africa works to improve cross-border payments, reduce transaction costs and strengthen regional financial integration.
The success of the approach will ultimately depend less on whether crypto is used and more on whether the underlying technology delivers tangible benefits to the people and businesses sending money across borders.
Source: EBC Financial Group; South African National Treasury; South African Reserve Bank; FinMark Trust.