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IOL News
11 hours ago
- Business
- IOL News
Crypto traders, pay attention: legal changes are coming
South Africa's exchange control rules are laws that decide how money can move in and out of the country. They affect how much forex you can buy, how you invest overseas, and how businesses move funds across borders, says Davron Chanderdeo. A RECENT High Court ruling just confirmed something many of us in the crypto world have known for a while. South Africa's laws around money, especially when it comes to crypto, are completely outdated. Judge Mandlenkosi Motha ruled that the country's exchange control regulations, which were written way back in 1961, don't apply to cryptocurrencies like Bitcoin. That's a big deal, because up until now, traders and investors have been operating in a confusing space, unsure what the rules really are. So, what does this mean if you're trading crypto on Luno, VALR, or Binance? Whether you're an investor, casual buyer or someone who trades daily, here's how this decision affects you and what you should do next. Why this ruling matters South Africa's exchange control rules are laws that decide how money can move in and out of the country. They affect how much forex you can buy, how you invest overseas, and how businesses move funds across borders. Until now, there's been no clear rule about where crypto fits. Is it like rand? Is it a foreign investment? Or is it something totally new? Someone can transfer Bitcoin from Cape Town to a family member in Hong Kong in a matter of minutes and that transaction, under current law, isn't clearly defined as foreign or local. The court said: crypto is not covered by the old rules. It's time for new laws made just for digital currencies. So what changes for traders or the everyday South African? Let's break it down with a few real-life examples. You're trading from your couch: You buy Bitcoin on Luno, then move it to Binance for better trading options. Under the old rules, it was unclear whether that was considered 'sending money offshore'. Now? The court says crypto isn't covered, so you're technically not breaking exchange control laws. But this may change once new rules come in. You work for a financial firm or are an avid investor: Let's say your firm wants to launch a crypto ETF or offer Bitcoin as one of the assets in a pension fund. Right now, that's risky, because crypto isn't clearly identified as an onshore or offshore asset. Furthermore, Regulation 28 of the Pension Funds Act allows limited exposure to crypto assets (up to 10%), but asset managers remain cautious due to FSCA guidance and ongoing market volatility. This ruling could pave the way for investment houses to get involved which means more opportunities and better products for everyday investors. The bigger picture: why regulation is good for you Let's face it, most South Africans don't like the idea of more rules. But in the crypto world, the right regulation doesn't mean more red tape, it means more protection, less risk, and real growth. According to the Financial Sector Conduct Authority (FSCA), crypto-related scams are on the rise in South Africa, particularly across social media platforms like WhatsApp, Facebook, and Instagram. Fraudsters often impersonate legitimate traders or companies, promising unrealistic returns and then vanishing once funds are transferred via Bitcoin or other crypto. These scams exploit crypto's semi-anonymous nature, making it harder to trace transactions and recover funds. A 2023 FSCA report warned that South Africans lost over R500 million to crypto scams in just one year, with most scams originating via social media or messaging platforms. So why would these scammers ever stop? While there's currently no formal government-mandated transaction declaration process between crypto wallets, increased regulation may soon require verified identification through Know-Your-Customer (KYC) processes at local and international exchanges. This would make it harder for criminals to use crypto anonymously and easier for authorities to trace illicit activity. Implementing regulation will: - Help prevent scams by setting minimum standards for exchanges and wallet providers. - Make tax reporting easier, so you know what you owe and can plan properly. - Encourage large institutional investors (like pension funds and asset managers) to enter the market, bringing stability and liquidity. - Create a legal path for innovation, like launching crypto linked debit cards, savings products, or smart investment platforms. My final thoughts are that this ruling is a win for the crypto community, but it's also a wake-up call: the wild west era of trading is ending. That's not a bad thing, it means South Africa is taking crypto seriously. And when the law takes something seriously, so does the market. Traders who stay informed, track their gains, and keep things clean will benefit the most. Crypto is here to stay. With the right legal framework, it can shift from the margins to the mainstream, unlocking innovation, securing investor trust, and contributing meaningfully to South Africa's financial ecosystem.
Business Insider
10-06-2025
- Business
- Business Insider
VALR and MoonPay Announce Integration to Enhance Global Crypto Access
Johannesburg, South Africa, June 10th, 2025, Chainwire VALR, Africa's largest cryptocurrency exchange by trade volume, and MoonPay, the global leader in crypto payments, today announced their integration to streamline fiat on- and off-ramps for users in over 180 countries. This partnership enables VALR to support 34 fiat currencies, including KES (Kenyan Shilling), NGN (Nigerian Naira), IDR (Indonesian Rupiah), TRY (Turkish Lira), BRL (Brazilian Real), and TWD (Taiwan Dollar), across payment methods such as Credit and Debit Cards, Apple Pay, Google Pay, PayPal, and Venmo. The integration strengthens VALR's mission to expand its global footprint and provide seamless access to cryptocurrencies like Bitcoin and stablecoins. With a user base exceeding 1.3 million and over 1,300 corporate and institutional clients, VALR continues to lead the development of a more inclusive global financial system. 'We are thrilled to partner with MoonPay to enhance our platform's accessibility for users worldwide,' said Farzam Ehsani, Co-Founder and CEO of VALR. 'This integration empowers our global community with efficient access to cryptocurrencies, aligning with VALR's vision of building a financial system that reflects the oneness of humanity.' 'We believe the future of money is crypto, and our goal is to make it easy for everyone to participate in this new digital economy,' said Ivan Soto-Wright, co-founder and CEO at MoonPay. 'Partnering with VALR to broaden access to stablecoins and other tokens is an exciting step toward our shared mission of global crypto adoption, empowering users in Africa and beyond to hold value on-chain.' Founded in 2018 and headquartered in Johannesburg, VALR offers a comprehensive suite of crypto services, including Spot Trading, Futures, Staking, Lending, OTC Trading, VALR Pay, and a world-class API for businesses to build on and high-frequency traders. Licensed by South Africa's FSCA, with regulatory approvals in Europe and initial approval from Dubai's VARA, VALR has raised $55 million from investors such as Pantera Capital, Fidelity's F-Prime, and Coinbase Ventures. MoonPay, trusted by over 30 million users, provides end-to-end solutions to simplify crypto access across 180+ countries. About VALR VALR is Africa's largest cryptocurrency exchange by trade volume, serving over 1.3 million users and 1,300 corporate clients. Founded in 2018, VALR offers products including Spot Trading, Futures, Staking, Lending, OTC Trading, VALR Pay, and a world-class API for businesses to build on and high-frequency traders. Headquartered in Johannesburg, VALR is licensed by the FSCA in South Africa, with approvals in Europe and initial approval from Dubai's VARA. The company has raised $55 million from investors like Pantera Capital, Coinbase Ventures, and F-Prime. For more, visit About MoonPay MoonPay creates a world where you own your digital future, giving you control of your identity, money, property, and data. We are the market leader in end-to-end solutions simplifying access to the crypto economy for 30M+ verified accounts across 180+ countries, and trusted by iconic global brands to power the creation and movement of digital value. Contact VALR
Coin Geek
09-05-2025
- Business
- Coin Geek
South Africa implements FATF Travel Rule for digital assets
Getting your Trinity Audio player ready... The Financial Action Task Force's (FATF) Travel Rule for digital currency has taken effect in South Africa, ushering in a new era of transparency in the country's digital assets sector. The Financial Intelligence Center (FIC) published Directive 9 in November 2024, notifying all VASPs that the Travel Rule would take effect on April 30. Under the Rule, VASPs must collect the originator and beneficiary information, including their full names, ID or passport numbers (if they are South African or foreigners, respectively), dates of birth and residential addresses. Transaction details such as amount, date and the unique transaction ID must also be included. The Travel Rule applies to all transaction sizes. However, some of the requirements are simplified for transactions below R5,000 ($270). The rule further requires VASPs to monitor and report any suspicious transactions. All the collected data must be stored for at least five years and made available to authorities upon request. South African VASPs have taken measures to comply with the new regulations, with violations punishable by fines and license revocations. Binance announced two weeks ago that it would require transaction information from its users, with violators risking unprocessed transactions. Others, like homegrown exchanges Luno and VALR, have made similar announcements. Luno told its users that the Travel Rule will allow VASPs to adhere to the same standards as their legacy finance peers. 'If this sounds kind of familiar, the Travel Rule has applied to financial institutions like banks for over twenty years. Banks use the SWIFT system to interact with one another for this purpose,' Luno stated. VALR has also reminded users to provide counterparty details since mid-April in preparation for the new standard. The exchange has partnered with London-based identity service provider Sumsub to comply with the rule. As hundreds of VASPs scramble to comply with the new standard, Bitcoin wallet Centbee has been ready for years. Co-founder Angus Brown told CoinGeek three years ago that this had been the norm for the previous 12 months. 'We have been treating it as if it's applicable in our business for the last year. So, we are doing all the things we're supposed to do and are compliant already,' he stated. However, others have expressed concerns, particularly over the low reporting threshold of $270. Sean Sanders, whose company, Altify, offers simple 'crypto' investment products, says it's one of the lowest thresholds globally. 'This will place extra compliance costs on investment platforms like ours, which may result in slower transaction processing times and an overall worse user experience for our users relative to platforms operating outside of South Africa,' he told a local outlet. Watch | AlphaDAPP: Revolutionizing blockchain adoption in Africa title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
