South African central bank names cryptocurrencies and stablecoins as new financial risks

The South African Central Bank (SARB) has warned that cryptoassets and stablecoins have become a new risk threatening the country's financial sector due to the lack of comprehensive regulation.
In its semi-annual Financial Stability Review report, it pointed out that the digital, cross-border nature of cryptocurrencies allows them to circumvent existing foreign exchange control laws, and digital assets have not yet been included in the regulation. Herco Steyn, the central bank's chief macroprudential expert, said the risk stems from the "incomplete regulatory framework". He expects progress next year, but warns that if progress stalls, "regulation will fall short". Currently, the South African central bank is working with the Ministry of Finance to develop new regulations to regulate cross-border cryptoasset transactions and amend foreign exchange control laws to include digital assets. The central bank stressed that as the adoption rate of cryptoassets increases, the domestic regulatory framework needs to be continuously adjusted with market development and risks. The data shows that the South African crypto industry is dominated by three platforms: Luno, VALR and Ovex. As of July, registered users were nearly 7.80 million; total assets amounted to R25.30 billion as of December 2024.