South Africa's crypto conundrum

Why modernising collective investment schemes is critical for retail investors

- John Jack, chief executive officer, Galetti Corporate Real Estate.

SOUTH AFRICA stands at a crossroads in the evolution of its financial markets.

Crypto assets have moved from fringe curiosity to a mainstream investment option, and licensed local exchanges now offer regulated, increasingly transparent access for retail investors.

Yet, our regulatory frameworks have not kept pace with investor demand for efficient, tax-advantaged investment products-especially those available through collective investment schemes (CIS).

Recent progress is undeniable. The Financial Sector Conduct Authority has brought Crypto Asset Service Providers under the Financial Advisory and Intermediary Services Act, introducing muchneeded oversight for advice and intermediation.

As of September 2025, the Johannesburg Stock Exchange permits the listing of exchange-traded products, such as exchange-traded funds (ETFs) and notes (ETNs) that reference spot cryptocurrencies, subject to robust standards for custody, pricing, and market integrity.

However, a critical gap remains: crypto assets are still excluded from South Africa's CIS framework. For retail investors and platforms, this exclusion creates unnecessary risks, tax inefficiencies, and a persistent incentive to seek offshore solutions, undermining the very protections our regulatory system is designed to provide.

Why CIS inclusion matters for retail cryptocurrency investors

The CIS regime is the backbone of South African retail investing. It offers tax neutrality, professional management, and strong investor safeguards.