The crypto world in South Africa is at a critical crossroads. While the industry has taken major steps toward legitimacy with recent licensing processes, new waves of regulation are threatening to slow things down – especially for smaller players just getting off the ground.
In a recent podcast chat, Brent Petersen, chair of the Crypto Asset Association of South Africa (CaaSA), gave a candid update on what’s really happening behind the scenes.
The most urgent concern?
The Travel Rule. Set to go live at the end of April 2025, it forces crypto exchanges and wallet providers to collect and share identity info on any transaction over R5,000 (~$252.5). While the goal is clear – combatting money laundering and terrorism financing – the cost of compliance could crush smaller crypto firms.
G-7 Countries Agree to Step Up Efforts for Tighter Crypto Regulations Set by FSB and FATF Travel Rule
The G-7 has indicated it will follow the standards set by the FSB and acceleratedglobal efforts for the implementation of the FATF Travel Rulehttps://t.co/u4YsNjwmiw
— BitKE (@BitcoinKE) May 17, 2023
Think: hundreds of thousands of Rands just to implement the necessary systems.
“We’re seeing a real risk that this could throttle innovation before some companies have even found their footing,” Petersen explains.
South Africa’s recent greylisting by the Financial Action Task Force (FATF) has also ramped up the heat. Crypto Asset Service Providers (CASPs) are now required to double down on KYC, KYB, and real-time monitoring – making things even tighter.
Nigeria
, South Africa
Placed under FATF Grey List – A Total of 8 African Nations Now Under Scrutiny
Interestingly, Botswana was grey listed by FATF before its removal in early 2022 after passing a virtual assets bill to regulate trading of cryptohttps://t.co/wOOrKihLyM
— BitKE (@BitcoinKE) February 28, 2023
It’s all part of a broader shift toward legitimacy and consumer protection. But there’s a fine line between smart oversight and regulatory overkill.
CaaSA Steps In
CaaSA, with its 34+ members, is acting as the frontline defense – lobbying for smarter regulation, not just more of it. Right now, they’re in active talks with the Financial Intelligence Centre, pushing for possible delays or adjustments to the Travel Rule roll-out.
FIC recently released a sector assessment report in April 2025, which examines how vulnerable local CASPs are to being exploited https://t.co/bDx2JiRX3s pic.twitter.com/Sqnl8mYUja
— BitKE (@BitcoinKE) April 9, 2025
On the bright side, Petersen shared some proactive moves: Caasa has set up an internal scam alert system, where members share red flags in real time.
Introducing SiBAN Scam Alert, a Crypto Scam Blacklisting Service in Nigeria: https://t.co/OutPlMJpNK @OfficialSiban #CryptoScams #BlockchainKE
— BitKE (@BitcoinKE) December 9, 2019
It’s not public yet, but there are hints it could expand – opening up a new layer of defense for everyday users.
The crypto scene in South Africa has come a long way in five years, but it’s still early. The challenge now is striking the right balance between security and freedom, regulation and innovation.
For anyone building in this space, or just curious about where it’s headed, this episode is packed with valuable insights.
Hit play and get the lowdown on where SA crypto is headed next.
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