South Africa’s Reserve Bank has issued a sharp warning about the rising risks posed by cryptocurrencies to the country’s financial stability. The concern was detailed in a new report referenced by Bloomberg, highlighting that digital assets have become a significant emerging threat for the national financial system.
According to the regulator, the absence of a comprehensive legal framework for both cryptoassets and stablecoins is now one of the key vulnerabilities. These gaps, officials say, leave the sector exposed and limit the authorities’ ability to safeguard the financial landscape.
The report also underlines that cryptocurrencies and stablecoins can be used to bypass South Africa’s currency-control mechanisms — an area that current regulations do not yet cover. This makes it possible for users to move value across borders in ways that fall outside traditional oversight.
Gerco Steyn, leading macroprudential specialist at the South African Reserve Bank, noted that the situation is further complicated by the lack of a “supplementary and complete regulatory base.” He added that meaningful progress is expected by 2026, but for now regulators still do not have full control over the sector.
To address these challenges, the central bank is working together with the National Treasury to design updated rules for cross-border crypto transactions, as well as introduce amendments to the country’s currency-exchange laws.
Earlier, it was reported that Tether plans to invest in Kotani Pay to help advance Africa’s digital financial infrastructure — another sign of growing crypto adoption across the continent.
