Summary
Intergovernmental Fintech Working Group (IFWG) conducted research to introduce Stablecoins in 2024, FIC & FSCA to improve enforcement of unlicensed providers
View DetailsIs it working?
The government should be commended for the progress made in 2024 with regards to approving crypto providers. Cryptocurrencies still form only a small portion of total investment capital in SA managed by fund managers, wealth managers and financial advisors. However, the approval of crypto providers could change this, which means that more regulation may be required to monitor this investment capital. While the enforcement for unlicensed service providers is advancing, the proposal to report crypto transactions for over R49,999 is still under consideration.
Actions
Amendments to the FIC Act (2001) in late 2022 resulted in the FSCA and FIC starting to register crypto assets service providers. In March 2024, the FSCA approved licences for some of the crypto asset providers who had applied and in April 2024, the agency confirmed and clarified the list of the approved providers.
Are there plans?
Analytical work will be carried out to better understand the applications of Stablecoins as well as appropriate policy and regulation responses.
Is it on the agenda?
Position paper on regulating crypto assets was published by the Intergovernmental Fintech Working Group (IFWG) in 2021. This laid the foundation for the addition of Stablecoins as a particular type of a crypto asset.
Goals
Promotion, adoption and regulation of crypto assets. FIC and FSCA to jointly increase enforcement of unlicensed service providers. Government considering including crypto assets transactions exceeding R49,999 to be reported to FIC.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
The Intergovernmental Fintech Working Group conducted research to introduce Stablecoins in 2024. The Financial Intelligence Centre (FIC) and Financial Services Conduct Authority (FSCA) are working to improve enforcement of unlicensed providers. Government is considering requiring crypto assets transactions exceeding R49,999 be reported to the FIC.
View DetailsIs it working?
The crypto asset policy is live and evolving. The FSCA began licensing VASPs in 2024 and interim anti-money laundering regulations are in force. The regulatory environment is still being refined in line with FATF and National Treasury directives.
Actions
Amendments to the FIC Act (2001) in late 2022 resulted in the FSCA and FIC starting to register crypto assets service providers. In March 2024, the FSCA approved licences for some of the crypto asset providers who had applied and, in April 2024, the agency confirmed and clarified the list of the approved providers. Interim anti-money laundering regulations were imposed in September 2024 and 32 virtual asset service providers (VASPs) licensed.
Are there plans?
Government plans to conduct analysis to better understand the applications of Stablecoins as well as appropriate policy and regulation responses.
Is it on the agenda?
A position paper on regulating crypto assets was published by the Intergovernmental Fintech Working Group (IFWG) in 2021. This laid the foundation for the addition of Stablecoins as a particular type of a crypto asset.
Goals
Promotion, adoption and regulation of crypto assets.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
The Intergovernmental Fintech Working Group conducted research to introduce Stablecoins in 2024. The Financial Intelligence Centre (FIC) and Financial Services Conduct Authority (FSCA) are working to improve enforcement of unlicensed providers. Government is considering requiring crypto assets transactions exceeding R49,999 be reported to the FIC.
View DetailsIs it working?
The crypto asset policy is live and evolving. The FSCA began licensing VASPs in 2024 and interim anti-money laundering regulations are in force. The regulatory environment is still being refined in line with FATF and National Treasury directives.
Actions
Amendments to the FIC Act (2001) in late 2022 resulted in the FSCA and FIC starting to register crypto assets service providers. In March 2024, the FSCA approved licences for some of the crypto asset providers who had applied and, in April 2024, the agency confirmed and clarified the list of the approved providers. Interim anti-money laundering regulations were imposed in September 2024 and 32 virtual asset service providers (VASPs) licensed.
Are there plans?
Government plans to conduct analysis to better understand the applications of Stablecoins as well as appropriate policy and regulation responses.
Is it on the agenda?
A position paper on regulating crypto assets was published by the Intergovernmental Fintech Working Group (IFWG) in 2021. This laid the foundation for the addition of Stablecoins as a particular type of a crypto asset.
Goals
Promotion, adoption and regulation of crypto assets.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Analytical work will be carried out to better understand the applications of Stablecoins as well as appropriate policy and regulation responses.
View DetailsIs it working?
Too early to establish this
Actions
Amendments to FIC Act (2001) in late 2022 resulting in FSCA and FIC starting to register crypto assets service providers
Are there plans?
FIC and FSCA to jointly enforce unlicensed service providers. Government considering including crypto assets transactions exceeding R49999 to be also reported to FIC.
Is it on the agenda?
Promotion, adoption and regulation of crypto assets
Goals
Position paper on regulating crypto assets was published by the Intergovernmental Fintech Working Group ( IFWG) in 2021. This laid the foundation for the addition of Stablecoins as a particular type of a crypto asset.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Analytical work will be carried out to better understand the applications of Stablecoins as well as appropriate policy and regulation responses.
View DetailsIs it working?
The government should be commended for the significant progress made in 2024 with regards to approving crypto providers. Cryptocurrencies still form only a small portion of total investment capital in SA managed by fund managers, wealth managers and financial advisors. However, the approval of crypto providers could change this, which means that more regulation may be required to monitor this investment capital.
Actions
Amendments to FIC Act (2001) in late 2022 resulting in FSCA and FIC starting to register crypto assets service providers. In March 2024, the FSCA approved licences for some of the crypto asset providers who had applied and in April 2024, the agency confirmed and clarified the list of the approved providers.
Are there plans?
FIC and FSCA to jointly increase enforcement of unlicensed service providers. Government considering including crypto assets transactions exceeding R49,999 to be reported to FIC.
Is it on the agenda?
Promotion, adoption and regulation of crypto assets.
Goals
Position paper on regulating crypto assets was published by the Intergovernmental Fintech Working Group (IFWG) in 2021. This laid the foundation for the addition of Stablecoins as a particular type of a crypto asset.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Intergovernmental Fintech Working Group (IFWG) conducted research to introduce Stablecoins in 2024, FIC & FSCA to improve enforcement of unlicensed providers
View DetailsIs it working?
The government should be commended for the progress made in 2024 with regards to approving crypto providers. Cryptocurrencies still form only a small portion of total investment capital in SA managed by fund managers, wealth managers and financial advisors. However, the approval of crypto providers could change this, which means that more regulation may be required to monitor this investment capital. While the enforcement for unlicensed service providers is advancing, the proposal to report crypto transactions for over R49,999 is still under consideration.
Actions
Amendments to the FIC Act (2001) in late 2022 resulted in the FSCA and FIC starting to register crypto assets service providers. In March 2024, the FSCA approved licences for some of the crypto asset providers who had applied and in April 2024, the agency confirmed and clarified the list of the approved providers.
Are there plans?
Analytical work will be carried out to better understand the applications of Stablecoins as well as appropriate policy and regulation responses.
Is it on the agenda?
Position paper on regulating crypto assets was published by the Intergovernmental Fintech Working Group (IFWG) in 2021. This laid the foundation for the addition of Stablecoins as a particular type of a crypto asset.
Goals
Promotion, adoption and regulation of crypto assets. FIC and FSCA to jointly increase enforcement of unlicensed service providers. Government considering including crypto assets transactions exceeding R49,999 to be reported to FIC.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Intergovernmental Fintech Working Group (IFWG) conducted research to introduce Stablecoins in 2024, FIC & FSCA to improve enforcement of unlicensed providers
View DetailsIs it working?
The government should be commended for the progress made in 2024 with regards to approving crypto providers. Cryptocurrencies still form only a small portion of total investment capital in SA managed by fund managers, wealth managers and financial advisors. However, the approval of crypto providers could change this, which means that more regulation may be required to monitor this investment capital. While the enforcement for unlicensed service providers is advancing, the proposal to report crypto transactions for over R49,999 is still under consideration.
Actions
Amendments to the FIC Act (2001) in late 2022 resulted in the FSCA and FIC starting to register crypto assets service providers. In March 2024, the FSCA approved licences for some of the crypto asset providers who had applied and in April 2024, the agency confirmed and clarified the list of the approved providers.
Are there plans?
Analytical work will be carried out to better understand the applications of Stablecoins as well as appropriate policy and regulation responses.
Is it on the agenda?
Position paper on regulating crypto assets was published by the Intergovernmental Fintech Working Group (IFWG) in 2021. This laid the foundation for the addition of Stablecoins as a particular type of a crypto asset.
Goals
Promotion, adoption and regulation of crypto assets. FIC and FSCA to jointly increase enforcement of unlicensed service providers. Government considering including crypto assets transactions exceeding R49,999 to be reported to FIC.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
The aim is to support SME's using technological developments related to payment systems. This would promote the growth of the overall SME sector which would also ultimately encourage employment in underserved communities.
View DetailsIs it working?
Financial inclusion for SMEs through payments innovations in South Africa would ultimately involve leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. However, the SME sector has been historically underserved implying that significant resources will be needed for this effort. Despite this, recent increased interest in the SME sector by some of the local banks should result in increased financial inclusion in the sector. Nonetheless, financial inclusion of SMEs is yet to be fully achieved given that renewed interest in the sector is somewhat recent.
Actions
Practical interventions are planned to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027. These initiatives are part of a broader strategy by the SARB to drive South Africa towards a more cashless society, with a strong focus on supporting SMEs through digitalisation.
Are there plans?
The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will be able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders in addition to reducing dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.
Is it on the agenda?
In collaboration with Switzerland, partners will include financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability.
Goals
When effectively implemented, SME payments reform in South Africa should create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption and reducing transaction costs and inefficiencies.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Financial inclusion for SMEs through payments innovations in South Africa involves leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. The SME sector has been historically underserved, implying that significant resources will be needed for this effort. In collaboration with Switzerland, South Africa is partnering with financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability.
View DetailsIs it working?
Financial inclusion of SMEs remains a challenge. However, recent increased interest in the SME sector by some local banks should result in increased financial inclusion in the sector. Payments innovation for SMEs is ongoing, with National Treasury and SARB supporting non-bank access to the payment system and regulatory changes planned in 2025. Amendments to the National Payment System Act are in progress.
Actions
Practical interventions are planned to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027.
Are there plans?
The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will be able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders and reducing dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.
Is it on the agenda?
These initiatives are part of a broader strategy by the SARB to drive South Africa towards a more cashless society, with a strong focus on supporting SMEs through digitalisation.
Goals
SME payments reform aims to create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption and reducing transaction costs and inefficiencies. Also forms part of financial inclusion drive.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Financial inclusion for SMEs through payments innovations in South Africa involves leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. The SME sector has been historically underserved, implying that significant resources will be needed for this effort. In collaboration with Switzerland, South Africa is partnering with financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability.
View DetailsIs it working?
Financial inclusion of SMEs remains a challenge. However, recent increased interest in the SME sector by some local banks should result in increased financial inclusion in the sector. Payments innovation for SMEs is ongoing, with National Treasury and SARB supporting non-bank access to the payment system and regulatory changes planned in 2025. Amendments to the National Payment System Act are in progress.
Actions
Practical interventions are planned to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027.
Are there plans?
The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will be able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders and reducing dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.
Is it on the agenda?
These initiatives are part of a broader strategy by the SARB to drive South Africa towards a more cashless society, with a strong focus on supporting SMEs through digitalisation.
Goals
SME payments reform aims to create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption and reducing transaction costs and inefficiencies. Also forms part of financial inclusion drive.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
This promote growth of the overall SME sector which would also ultimately encourage employment in underserved communities.
View DetailsIs it working?
To be determined
Actions
Practical interventions to contribute to an inclusive payments digitalisation programme. Interventions to be implemented from 2024 to 2027.
Are there plans?
The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders in addition to reducing dependency on agents. The digitisation initiative will mainly focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.
Is it on the agenda?
In collaboration with Switzerland, partners will include financial service providers in specific markets. Intended to target a combination of new entrants, smaller players and larger incumbents to ensure scalability
Goals
When effectively implemented, SME payments reform in South Africa should aim to create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption, and reducing transaction costs and inefficiencies.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
This promotes the growth of the overall SME sector which would also ultimately encourage employment in underserved communities.
View DetailsIs it working?
Financial inclusion for SMEs through payments innovations in South Africa would ultimately involve leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. However, the SME sector has been historically underserved implying that significant resources will be needed for this effort. Despite this, recent increased interest in the SME sector by some of the local banks should result in increased financial inclusion in the sector.
Actions
Practical interventions to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027.
Are there plans?
The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders in addition to reducing dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.
Is it on the agenda?
In collaboration with Switzerland, partners will include financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability.
Goals
When effectively implemented, SME payments reform in South Africa should aim to create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption, and reducing transaction costs and inefficiencies.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
The aim is to support SME's using technological developments related to payment systems. This would promote the growth of the overall SME sector which would also ultimately encourage employment in underserved communities.
View DetailsIs it working?
Financial inclusion for SMEs through payments innovations in South Africa would ultimately involve leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. However, the SME sector has been historically underserved implying that significant resources will be needed for this effort. Despite this, recent increased interest in the SME sector by some of the local banks should result in increased financial inclusion in the sector. Nonetheless, financial inclusion of SMEs is yet to be fully achieved given that renewed interest in the sector is somewhat recent.
Actions
Practical interventions are planned to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027. These initiatives are part of a broader strategy by the SARB to drive South Africa towards a more cashless society, with a strong focus on supporting SMEs through digitalisation.
Are there plans?
The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will be able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders in addition to reducing dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.
Is it on the agenda?
In collaboration with Switzerland, partners will include financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability.
Goals
When effectively implemented, SME payments reform in South Africa should create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption and reducing transaction costs and inefficiencies.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
The aim is to support SME's using technological developments related to payment systems. This would promote the growth of the overall SME sector which would also ultimately encourage employment in underserved communities.
View DetailsIs it working?
Financial inclusion for SMEs through payments innovations in South Africa would ultimately involve leveraging technology and new payment methods to provide these businesses with access to financial services that were previously inaccessible or difficult to obtain. This would help SMEs grow, manage their finances more efficiently and integrate more fully into the formal economy. However, the SME sector has been historically underserved implying that significant resources will be needed for this effort. Despite this, recent increased interest in the SME sector by some of the local banks should result in increased financial inclusion in the sector. Nonetheless, financial inclusion of SMEs is yet to be fully achieved given that renewed interest in the sector is somewhat recent.
Actions
Practical interventions are planned to contribute to an inclusive payments digitalisation programme. The interventions will be implemented from 2024 to 2027. These initiatives are part of a broader strategy by the SARB to drive South Africa towards a more cashless society, with a strong focus on supporting SMEs through digitalisation.
Are there plans?
The initiative will be made up of four digital payment pilot projects. 1) Community - local merchants will be able to establish infrastructure required for digital payments such as internet and POS devices (to be piloted in Gauteng). 2) Informal and low-income payments - the main aim is to digitise by testing various solutions at shopping centres, petrol stations and restaurants. 3) Cross-border remittances - intended to combat money laundering and financing terrorist-related activities as well as reducing costs for cross-border traders in addition to reducing dependency on agents. The digitalisation initiative will focus on key remittances to Lesotho, Malawi, Mozambique and Zimbabwe. 4) Cross-border trade - the aim is to formalise access to finance for SMEs engaged in regional trade targeting the poor and specifically women.
Is it on the agenda?
In collaboration with Switzerland, partners will include financial service providers in specific markets. The intention is to target a combination of new entrants, smaller players and larger incumbents to ensure scalability.
Goals
When effectively implemented, SME payments reform in South Africa should create an enabling environment for SMEs to improve access to modern payment infrastructure, promoting digital adoption and reducing transaction costs and inefficiencies.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview by June 2024 but has not done so. Policy and regulations implications were expected by Dec 2024. Tokenisation could enhance access to funds, improve transparency and accountability and increase FDI. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.
View DetailsIs it working?
The MTBPS only briefly addresses digital asset regulation, despite recent steps in licensing some crypto asset providers. Investors in fintech and digital assets are likely seeking clearer signals about SA’s stance on the role of crypto assets, tokenisation in financial markets and blockchain use in debt management (as seen in Nigeria and Ghana). A lack of clear, forward-looking policy guidance here creates uncertainty for investors eyeing long-term digital asset growth in SA. This ambiguity could lead to missed opportunities in a fast-growing global market. However, proactive investors might leverage this regulatory gap by engaging with policy stakeholders to drive favourable frameworks, positioning themselves as early movers when comprehensive digital asset regulations eventually materialise.
Actions
Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, with SA also evaluating the platform. In SA, tokenisation for debt management is still in the exploratory and research phase, with no direct implementation yet.
Are there plans?
Publications of the overview and policy/regulation blueprint are expected during 2024.
Is it on the agenda?
The IFWG is evaluating the impact of tokenisation on financial markets. It is improving awareness of tokenisation, clarity on regulations and assessing risks associated in the market with regards to FDI in financial markets.
Goals
When effectively implemented, the reform should leverage technologies to modernise financial markets, improve access to capital and grow the economy as well as ensuring that there is protection for investors. This would also attract foreign direct investment while ensuring stability in local financial markets.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Tokenisation could enhance access to funds, improve transparency and accountability, and increase foreign direct investment. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why South Africa is also evaluating the platform. The MTBPS only briefly addressed digital asset regulation, despite recent steps in licensing some crypto asset providers. Investors in fintech and digital assets are likely seeking clearer signals about South Africa's stance on the role of crypto assets, tokenisation in financial markets and blockchain use in debt management (as seen in Nigeria and Ghana). The FSCA is consulting on further targeted regulation for tokenised traditional financial assets in 2025, recognising both the innovation opportunities and the need for investor protection, secure custody and sound secondary markets. The Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview of tokenisation by June 2024 but has not done so. Policy and regulations implications were expected by December 2024.
View DetailsIs it working?
A lack of clear, forward-looking policy guidance creates uncertainty for investors eyeing long-term digital asset growth in South Africa. This ambiguity could lead to missed opportunities in a fast-growing global market. However, proactive investors might leverage this regulatory gap by engaging with policy stakeholders to drive favourable frameworks, positioning themselves as early movers when comprehensive digital asset regulations eventually materialise. Tokenisation is a live area of innovation, with FSCA and SARB monitoring developments. Regulatory frameworks are being developed but not yet concluded. The Conduct of Financial Institutions (COFI) Bill is expected to cover this in the future.
Actions
The FSCA is consulting on further targeted regulation for tokenised traditional financial assets in 2025. The Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview of tokenisation by June 2024 but has not done so. Policy and regulations implications were expected by December 2024.
Are there plans?
A total of 138 institutions have been approved as Crypto Asset Service Providers (CASPs) by the FSCA as of mid-2025, with the sector subject to evolving compliance, capital and consumer protection rules. There is also growing discussion of custody standards and legal enforceability for tokenised assets.
Is it on the agenda?
The Intergovernmental Fintech Working Group was established to evaluate the impact of tokenisation on financial markets.
Goals
The goal of the reform is to leverage technologies to modernise financial markets, improve access to capital, attract foreign direct investment, protect investors, grow the economy and ensure stability in local financial markets.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Tokenisation could enhance access to funds, improve transparency and accountability, and increase foreign direct investment. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why South Africa is also evaluating the platform. The MTBPS only briefly addressed digital asset regulation, despite recent steps in licensing some crypto asset providers. Investors in fintech and digital assets are likely seeking clearer signals about South Africa's stance on the role of crypto assets, tokenisation in financial markets and blockchain use in debt management (as seen in Nigeria and Ghana). The FSCA is consulting on further targeted regulation for tokenised traditional financial assets in 2025, recognising both the innovation opportunities and the need for investor protection, secure custody and sound secondary markets. The Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview of tokenisation by June 2024 but has not done so. Policy and regulations implications were expected by December 2024.
View DetailsIs it working?
A lack of clear, forward-looking policy guidance creates uncertainty for investors eyeing long-term digital asset growth in South Africa. This ambiguity could lead to missed opportunities in a fast-growing global market. However, proactive investors might leverage this regulatory gap by engaging with policy stakeholders to drive favourable frameworks, positioning themselves as early movers when comprehensive digital asset regulations eventually materialise. Tokenisation is a live area of innovation, with FSCA and SARB monitoring developments. Regulatory frameworks are being developed but not yet concluded. The Conduct of Financial Institutions (COFI) Bill is expected to cover this in the future.
Actions
The FSCA is consulting on further targeted regulation for tokenised traditional financial assets in 2025. The Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview of tokenisation by June 2024 but has not done so. Policy and regulations implications were expected by December 2024.
Are there plans?
A total of 138 institutions have been approved as Crypto Asset Service Providers (CASPs) by the FSCA as of mid-2025, with the sector subject to evolving compliance, capital and consumer protection rules. There is also growing discussion of custody standards and legal enforceability for tokenised assets.
Is it on the agenda?
The Intergovernmental Fintech Working Group was established to evaluate the impact of tokenisation on financial markets.
Goals
The goal of the reform is to leverage technologies to modernise financial markets, improve access to capital, attract foreign direct investment, protect investors, grow the economy and ensure stability in local financial markets.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Tokenisation could enhance access to funds, improve transparency and accountability and increase FDI. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.
View DetailsIs it working?
Given that the overview is yet to be published, it's too early to tell whether reforms will be effective. Furthermore, once published, the overview will need to be implemented in the financial market to establish effectiveness.
Actions
Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.
Are there plans?
Expected publications on the overview and policy/regulation blueprint during 2024
Is it on the agenda?
Yes, the IFWG evaluating the impact of tokenisation on financial markets. Improving awareness of tokenisation, clarity on regulations and assessing risks associated
Goals
When effectively implemented, the reform should leverage technologies to modernise financial markets, improve access to capital, economic growth as well as ensuring that there is protection for investors. This would also attract foreign direct investment (FDI) while ensuring stability in local financial markets.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Tokenisation could enhance access to funds, improve transparency and accountability and increase FDI. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.
View DetailsIs it working?
Given that the overview is yet to be published, it's too early to tell whether reforms will be effective. Furthermore, once published, the overview will need to be implemented in the financial market to establish effectiveness.
Actions
Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.
Are there plans?
Publications of the overview and policy/regulation blueprint are expected during 2024.
Is it on the agenda?
The IFWG is evaluating the impact of tokenisation on financial markets. It is improving awareness of tokenisation, clarity on regulations and assessing risks associated in the market with regards to FDI in financial markets.
Goals
When effectively implemented, the reform should leverage technologies to modernise financial markets, improve access to capital and grow the economy as well as ensuring that there is protection for investors. This would also attract foreign direct investment while ensuring stability in local financial markets.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview by June 2024 but has not done so. Policy and regulations implications were expected by Dec 2024. Tokenisation could enhance access to funds, improve transparency and accountability and increase FDI. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.
View DetailsIs it working?
The MTBPS only briefly addresses digital asset regulation, despite recent steps in licensing some crypto asset providers. Investors in fintech and digital assets are likely seeking clearer signals about SA’s stance on the role of crypto assets, tokenisation in financial markets and blockchain use in debt management (as seen in Nigeria and Ghana). A lack of clear, forward-looking policy guidance here creates uncertainty for investors eyeing long-term digital asset growth in SA. This ambiguity could lead to missed opportunities in a fast-growing global market. However, proactive investors might leverage this regulatory gap by engaging with policy stakeholders to drive favourable frameworks, positioning themselves as early movers when comprehensive digital asset regulations eventually materialise.
Actions
Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, with SA also evaluating the platform. In SA, tokenisation for debt management is still in the exploratory and research phase, with no direct implementation yet.
Are there plans?
Publications of the overview and policy/regulation blueprint are expected during 2024.
Is it on the agenda?
The IFWG is evaluating the impact of tokenisation on financial markets. It is improving awareness of tokenisation, clarity on regulations and assessing risks associated in the market with regards to FDI in financial markets.
Goals
When effectively implemented, the reform should leverage technologies to modernise financial markets, improve access to capital and grow the economy as well as ensuring that there is protection for investors. This would also attract foreign direct investment while ensuring stability in local financial markets.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)
Summary
Intergovernmental Fintech Working Group (IFWG) was scheduled to publish an overview by June 2024 but has not done so. Policy and regulations implications were expected by Dec 2024. Tokenisation could enhance access to funds, improve transparency and accountability and increase FDI. Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, which is why SA is also evaluating the platform.
View DetailsIs it working?
The MTBPS only briefly addresses digital asset regulation, despite recent steps in licensing some crypto asset providers. Investors in fintech and digital assets are likely seeking clearer signals about SA’s stance on the role of crypto assets, tokenisation in financial markets and blockchain use in debt management (as seen in Nigeria and Ghana). A lack of clear, forward-looking policy guidance here creates uncertainty for investors eyeing long-term digital asset growth in SA. This ambiguity could lead to missed opportunities in a fast-growing global market. However, proactive investors might leverage this regulatory gap by engaging with policy stakeholders to drive favourable frameworks, positioning themselves as early movers when comprehensive digital asset regulations eventually materialise.
Actions
Other African countries like Nigeria, Ghana and Kenya are exploring tokenisation for debt management, with SA also evaluating the platform. In SA, tokenisation for debt management is still in the exploratory and research phase, with no direct implementation yet.
Are there plans?
Publications of the overview and policy/regulation blueprint are expected during 2024.
Is it on the agenda?
The IFWG is evaluating the impact of tokenisation on financial markets. It is improving awareness of tokenisation, clarity on regulations and assessing risks associated in the market with regards to FDI in financial markets.
Goals
When effectively implemented, the reform should leverage technologies to modernise financial markets, improve access to capital and grow the economy as well as ensuring that there is protection for investors. This would also attract foreign direct investment while ensuring stability in local financial markets.
Departments / Govt Institutions
Financial Sector Conduct Authority (FSCA) National Treasury South African Reserve Bank (SARB)