SARB Crypto Payment Frameworks: What South Africa Is Planning
The SARB crypto payment frameworks are beginning to take shape.
The South African Reserve Bank is developing separate regulatory frameworks for crypto used in domestic payments and cross-border transactions.
SARB deputy governor Fundi Tshazibana confirmed that the central bank was working on both areas. However, she explained that the process was complex because SARB does not currently recognise crypto assets as money.
The frameworks are still under development. Therefore, they should not be treated as final regulations or proof that South Africa has recognised cryptocurrency as legal tender.
Why SARB Is Reviewing Crypto Payments
Crypto assets can be used to transfer value without relying entirely on banks or traditional payment networks.
For example, one person can send Bitcoin or a stablecoin directly to another person. A customer may also use crypto to pay a merchant, while businesses can use digital assets to transfer money between companies.
However, South Africa’s payment laws were mainly designed around money and payment systems managed by regulated financial institutions.
In May 2026, SARB and the Financial Sector Conduct Authority clarified that crypto assets currently fall outside the National Payment System Act. They are not considered money or legal tender under that law.
At the same time, crypto-related advice and intermediary services can fall under financial-sector regulations. Companies offering these services may need authorisation from the Financial Sector Conduct Authority.
This creates an important distinction. A crypto company may have a licence to provide financial services, but that licence does not automatically mean SARB regulates its crypto payment activities under the National Payment System Act.
Separate Rules for Domestic and Cross-Border Payments
SARB is working on two separate areas of crypto regulation.
Domestic payments involve transactions completed within South Africa. These may include:
- Payments between individuals
- Payments from customers to businesses
- Transfers between businesses
- Payments for products and services
Cross-border payments involve money or crypto moving between South Africa and another country.
The distinction matters because domestic payments and international transfers involve different risks and regulatory responsibilities.
For example, cross-border transactions may also fall under exchange-control rules. These rules govern how money and value move into and out of South Africa.
SARB’s May 2026 communication focused only on domestic crypto payments. It specifically excluded cross-border transactions, which the central bank is addressing through a separate process.
SARB Wants Better Visibility Over Crypto Transactions
One of SARB’s concerns is that crypto transactions can happen outside traditional banking channels.
Banks normally collect customer information, monitor transactions and submit certain reports to regulators. However, authorities may have less visibility when people transfer crypto through wallets, exchanges or other digital platforms.
South Africa’s crypto market has also grown significantly.
A November 2025 SARB report said that Luno, VALR and Ovex had almost 7.8 million registered users by the end of July 2025. However, this figure refers to registered customer accounts across the three platforms. It does not necessarily represent 7.8 million unique or active investors.
The same report found that the ten largest domestically hosted Bitcoin wallets had processed about R62.75 billion in outward transfers between January 2019 and October 2025.
This figure does not prove that every transfer was illegal. Instead, it shows the scale of crypto value moving across borders and the difficulty regulators face when monitoring those transactions.
Stablecoins Raise Different Regulatory Questions
SARB is also examining stablecoins separately from assets such as Bitcoin.
A stablecoin is a crypto asset designed to maintain a relatively stable price. Many stablecoins track traditional currencies such as the US dollar or South African rand.
For example, a dollar-backed stablecoin usually aims to maintain a value of one US dollar.
This makes stablecoins more practical for payments than highly volatile crypto assets. However, their structure can create new regulatory concerns.
SARB has said it must consider whether a stablecoin is:
- Pegged to the South African rand
- Backed by US dollars or another foreign currency
- Supported by cash, financial assets or another type of reserve
- Redeemable for traditional currency
Each structure could affect consumers, payment systems and monetary policy differently.
SARB is particularly interested in testing rand-pegged stablecoins through the Intergovernmental Fintech Working Group’s Regulatory Sandbox. The tests could help regulators understand how domestic stablecoin payments work before introducing formal rules.
However, the central bank is more cautious about foreign-currency stablecoins.
SARB warned that widespread use of dollar-backed stablecoins could encourage currency substitution, sometimes called dollarisation. This happens when people increasingly use a foreign currency instead of their national currency.
As a result, foreign stablecoins could weaken the role of the rand in domestic payments.
Crypto Payments Could Affect Monetary Policy
SARB also wants to understand how crypto payments could affect monetary policy.
Monetary policy refers to the actions a central bank takes to control inflation and support economic stability. One of its main tools is changing interest rates.
These decisions normally affect the economy through banks, loans, savings and rand-based payment systems.
However, a large payment network built around private digital assets or foreign stablecoins could move some financial activity outside those channels.
This does not mean that SARB has decided to ban crypto payments. Instead, the central bank wants to understand the market before deciding how different payment activities should be regulated.
What the Frameworks Could Mean for Crypto Companies
The new frameworks could eventually affect crypto exchanges, fintech companies, payment providers and stablecoin issuers operating in South Africa.
Depending on the final rules, companies may face additional requirements involving:
- Payment-service authorisation
- Customer identification
- Transaction monitoring
- Cross-border reporting
- Stablecoin reserves
- Consumer protection
- Cybersecurity
- Exchange-control compliance
However, SARB has not yet published complete rules covering these areas.
Therefore, companies should not assume that every possible requirement will become law. The exact obligations will depend on the final frameworks and any changes made to South Africa’s payment and exchange-control legislation.
