On 15 May 2025, the High Court in Pretoria ruled that cryptocurrencies do not constitute “money,” “currency” or “capital” under South Africa’s Exchange Control Regulations, 1961. This means crypto assets are not subject to South Africa’s exchange control regime and there is no requirement for SARB approval to export them.
The case was brought by Standard Bank of South Africa, challenging the South African Reserve Bank’s forfeiture of R16.4 million linked to cryptocurrency transactions initiated by Leo Cash and Carry (LCC). Standard Bank had lent funds to LCC before the company was placed in liquidation and sought to recover those funds.
The court had to determine whether LCC’s cryptocurrency activities amounted to contraventions of the Exchange Control Regulations, thereby justifying the forfeiture.
In its decision, the Court found that cryptocurrency is not legal tender in South Africa and does not fall under the definitions of “money,” “currency” or “capital” in terms of the Regulations. The Court further held that interpreting cryptocurrency as money stretches the definition in a way that is strained and impractical.
The Court acknowledged that there is a regulatory lacuna concerning cryptocurrencies and stated that it is the role of the legislature, not the judiciary, to amend the law to cover new asset classes like crypto.
As a result, SARB’s forfeiture of the R16.4 million was set aside.
The practical implication of the judgment is that cross-border crypto transfers fall outside the scope of exchange control approvals and that exporting Bitcoin or other crypto assets from South Africa will not, in itself, breach the current Regulations.
However, on 23 May 2025, SARB filed an application for leave to appeal, seeking to overturn the Court’s finding that cryptocurrencies do not constitute money, currency, or capital. As a result, the legal position set out in the judgment is suspended pending the outcome of the appeal.
