The country’s central bank stated that financial institutions in South Africa are now permitted to deal with monies related to digital assets and shouldn’t arbitrarily block all crypto clients.
The South African Reserve Bank (SARB) said in new guidelines released this week that banks in the nation “may act as a conduit for funds” linked to crypto asset service providers and “may play a role in customers wishing to purchase” or “receive payouts in fiat currency” in their bank accounts for the sale of crypto.
This advice was made public after some regional banks took action to close down accounts connected to cryptocurrency exchanges, citing risk exposures. According to the SARB, the risk assessment does not always imply that institutions should try to completely eliminate risk.
While the central bank issued a warning that current regulations did not permit “cross-border or foreign exchange transfers for the explicit purpose of purchasing crypto assets,” some South African banks in June 2021 prohibited customers from using their credit and debit cards to purchase cryptocurrencies on foreign exchanges.
However, South Africans are permitted to purchase cryptocurrency with their yearly “single discretionary allowance” of up to 1 million South African rands (about $59,000) or 10 million rands ($580,000) of foreign capital allowance.