Crypto traders, pay attention: legal changes are coming

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 South Africa's laws around money, especially when it comes to crypto, are completely outdated.

- DAVRON CHANDERDEO

Judge Mandlenkosi Motha ruled that the country's exchange control regulations, which were written 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.