When we last wrote on SARS’ (South African Revenue Service’s) rising interest in crypto assets (see “The South African Revenue Service cracks down on crypto-assets”), regulation was in nascent form: enforcement patchy, legal uncertainties around exchange control unsettled, CASPs (crypto asset service providers) quietly hoping that the regulatory gloss wouldn’t bite.
That calm is ending. On 15 September 2025, SARS published draft regulations implementing the OECD’s Crypto-Asset Reporting Framework (CARF) and amended the Common Reporting Standard (CRS), with a proposed effective date of 1 March 2026. At the same time, the South African legal landscape was shaken by the case Standard Bank of South Africa vs South African Reserve Bank & Others (High Court, Pretoria, May 2025) in which the court held that cryptocurrencies are not “capital” under the current Exchange Control Regulations, meaning that SARB’s powers to block export or foreign remittances of crypto under those regulations do not apply (at least under current law). The judgment is under appeal.
Together, the CARF/CRS draft regs and the SARB/Standard Bank case illustrate how regulation is shifting rapidly: from regulatory uncertainty toward much greater transparency, reporting obligations, and legal clarity, for better or worse, for businesses, investors and ordinary crypto users alike.
Scope of Proposed CARF/Revised CRS: What South Africa Will Require
From the published draft and related commentary, here are the core features of the proposed framework:
- Crypto Asset Service Providers (CASPs) will be in scope. These include exchanges, brokers, wallet providers, and possibly others such as custodial services.
- The regulated crypto assets cover not only conventional cryptocurrencies, but also stablecoins, certain electronic money products, and in some drafts, possibly certain NFTs.
- Reporting obligations will include collection and reporting of detailed information: acquisitions, disposals, transfers, valuations, identities of account holders (inclusive of controlling persons), tax residency etc.
- Revised CRS will broaden its scope to include previously out-of-scope financial products and intermediaries; certain new asset classes (electronic money / digital asset classes) will be pulled into CRS reporting.
- Effective date proposed: 1 March 2026 for compliance.
The SARB/Standard Bank Case: What it Changes (and What it Doesn’t)
- Facts: In Standard Bank of South Africa vs SARB & Others, SARB’s Financial Surveillance Department (FinSurv) forfeited large sums from accounts held by a business (Leo Cash & Carry), alleging that transfers involving crypto assets were export of capital under Exchange Control Regulations. Standard Bank challenged that.
- High Court ruling (May 2025): Cryptocurrencies are not “capital” under the ExCon Regulations, and so current exchange control rules (as worded) do not apply to crypto. SARB’s attempt to treat crypto as subject to ExCon (capital export, regulatory approvals etc.) was held to be ultra vires.
- What remains unsettled:
- The appeal by SARB: the matter is not yet final, SARB seeks leave to appeal.
- Legislative reform is likely needed. The court itself noted the Exchange Control Regulations (originally from 1961) were not drafted with digital assets in mind. The law will likely be updated to capture crypto explicitly if regulators follow through.
How CARF/CRS + Standard Bank v SARB Interact: What This Means for Crypto Stakeholders
Putting the regulatory pieces together:
| Area | Before | After (expected from March 2026 CARF / CRS + case law) |
| Reporting & tax transparency | Limited, patchy, CASPs sometimes informal; tax authorities depend largely on self-reporting and voluntary disclosure. | Significant increase in reporting obligations; cross-border exchange of info under OECD MCAA; CASPs must report detailed transactions. |
| Legal certainty over exchange controls | Crypto movement possibly constrained if regulators (SARB) interpreted ExCon broadly, but ambiguity and risk. | Standard Bank case provides legal precedent (for now) that cryptos are not within “capital” under current ExCon rules, unless laws are changed. |
| Obligation risk for CASPs | Unclear obligations, risk of inadvertent non-compliance; SARB regulation uncertain. | CASPs will need to prepare internal systems, tax and regulatory compliance, KYC, recordkeeping etc., greater enforcement risk. |
| Investor / taxpayer risk | Hidden crypto holdings or transactions have historically been a grey area; offshore non-reporting carried risk. | Higher likelihood of detection; voluntary disclosure programmes will become more relevant; penalties risk for non-compliance. |
| Exchange of information internationally | CRS applies to traditional financial accounts; cryptos generally not covered until now. | Expanded CRS + CARF bring crypto into the auto-exchange regime. Tax authorities including SARS will share data with other jurisdictions. |
Recommended Implications & Actions
For those in the crypto space, investors, CASPs, individuals – here are practical takeaways:
- Review your crypto holdings / transactions: Record keeping for all crypto trades, disposals, transfers, staking etc. will need to be robust for the first time in terms that satisfy tax audit / regulatory scrutiny.
- CASPs should prepare compliance infrastructure: Systems to verify tax residency; maintain transaction-history, valuations; capacity to produce reports in required format; attention to defining “reportable persons,” controlling persons etc.
- Voluntary Disclosure: If past transactions / holdings have been undeclared, consider using SARS’ VDP (Voluntary Disclosure Programme) ahead of March 2026. Better to preempt enforcement.
- Monitor SARB legislative developments: The Standard Bank vs SARB decision removes ExCon restrictions for now, but legislative amendment is likely. Businesses involved in cross-border crypto transfers should watch closely.
- Legal structuring and risk planning: Depending on where you are in the value chain (holder, trader, service provider), adapt structures (e.g. where CASPs are resident, where assets held) to align with reporting obligations and treaties.
Conclusion
The crypto regulatory world in South Africa has shifted from a state of ambiguous legal risk to accelerating standardisation, reporting, and transparency. With CARF and the revised CRS regulations slated for effect in early March 2026, and the judicial clarification supplied by Standard Bank vs SARB, stakeholders no longer have a luxury of uncertainty.
There remains time to act: review, restructure, and document. But in this ecosystem, the window for hiding in grey areas is closing fast. Get in touch if you’d like help to get your documentation in line.
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