Cape Town – EBC Financial Group (EBC) has indicated that the envisioned cryptocurrency regulations in South Africa may impact the payment amounts made by individuals throughout the region.
As per FinMark Trust, most transactions within the nation’s largest formal remittance markets fall between ZAR 500 and ZAR 1,899, while the draft regulations propose a limit of ZAR 5,000 per transaction daily for specific person-to-person remittances.
For users in South Africa utilizing these licensed remittance services, cryptocurrency would not act as the currency being sent.
According to the proposed guidelines, individuals would pay in rand to the authorized provider, without ever possessing or controlling the cryptocurrency asset.
The provider would subsequently use cryptocurrency to settle payments with an international payout partner.
On 3 August 2026, the National Treasury and the South African Reserve Bank (SARB) released the draft Crypto Asset Manual for public consultation.
David Precious, Senior Market Analyst at EBC Financial Group, stated, “People are already transferring considerably smaller amounts across the region, so the ZAR 5,000 limit could cover the types of transactions prevalent in the remittance industry.
A sender could pay in rand, while the authorized provider handles the crypto settlement in the background.
The customer wouldn’t need to buy or monitor any cryptocurrencies.
What remains unclear is whether providers can translate that into a service that is cheaper, quicker, or more reliable.”
Importance of the ZAR 5,000 Limit
Analysis of actual remittance data underscores the significance of the proposed limit.
FinMark Trust revealed that over ZAR 4.5 billion was transferred in transactions valued between ZAR 1,100 and ZAR 1,299 in 2024 alone.
The draft would allow relevant remittance products to conduct transactions up to ZAR 5,000 per transaction daily, and ZAR 25,000 per sender per month.
However, not every transfer under ZAR 5,000 would be eligible.
The draft confines the service to specific remittance transactions between individuals and stipulates conditions regarding eligibility and destinations for the funds.
Nonetheless, comparison of the two data sets implies that the proposed limit comfortably exceeds typical transaction sizes in several of the region’s largest formal remittance markets.
The volume of transactions also illustrates why this proposal is relevant beyond the cryptocurrency sector.
Formal remittance outflows from South Africa to other Southern African Development Community (SADC) nations rose from just under ZAR 6 billion with 4.8 million transactions in 2016 to over ZAR 19 billion and 15.7 million transactions by 2024, according to FinMark Trust using SARB Balance of Payments data.
The ZAR 19 billion figure pertains to the entire formal market and does not necessarily imply that all of it would qualify for the proposed crypto settlement pathway.
Kwanza’s Inclusion in SADC-RTGS as South Africa Advocates for an Alternative Crypto Remittance Route
South Africa’s proposal arises during a period of evolution in traditional regional payment systems.
On 27 July, SARB announced that the Angolan kwanza has now joined as the second settlement currency in the SADC real-time gross settlement system (SADC-RTGS), which previously relied exclusively on the South African rand since its establishment in 2013.
SARB noted this addition helps reduce costs, enhance speed, and improve efficiency in cross-border payments.
The SADC-RTGS and the proposed crypto remittance framework are separate systems. SADC-RTGS does not include cryptocurrency, while the draft Manual specifically allows crypto settlements between authorized providers and foreign payout partners for designated remittance transactions.
Additionally, regional gatherings provide a relevant timeline context.
The SADC Council of Ministers is scheduled to meet from 12 to 14 August, followed by the Heads of State and Government Summit in Durban on 17 August.
SADC has highlighted that the Summit will tackle subjects aimed at enhancing regional integration and development.
Geographical factors pose substantial constraints on the proposed service.
The draft specifies that authorized providers cannot engage in cryptocurrency transactions with residents of Lesotho, Namibia, or eSwatini, which are also part of the Common Monetary Area along with South Africa.
Lesotho’s exclusion is notably significant.
FinMark Trust identifies Zimbabwe, Lesotho, Malawi, and Mozambique as the four primary formal remittance destinations from South Africa, collectively accounting for nearly 90% of formal SADC remittances.
As a result, the proposed crypto settlement approach may inadvertently exclude one of South Africa’s largest regional remittance markets.
Precious elaborated, “When sending money home, the underlying technology is not a primary concern for the sender.
“Individuals will prioritize the fees they incur, the exchange rates they receive, the total amount reaching the recipient, and the transfer duration.
“While cryptocurrency might provide providers with an additional method for settling payments, its benefits will only manifest if customers notice improvements in costs, speed, or reliability.”
For more information, visit www.ebc.com.
Disclaimer: This information is intended solely for informational purposes and does not represent a recommendation or advice from EBC Financial Group and all its entities (EBC).
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