Fintech and digital finance regulation
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Individual Reform: Fintech and digital finance regulation 2026 - 2027

Regulation of fintech, crypto assets and digital payment providers

No data available for the deliverable: Regulation of fintech, crypto assets and digital payment providers

No data available for the deliverable: Regulation of fintech, crypto assets and digital payment providers

No data available for the deliverable: Regulation of fintech, crypto assets and digital payment providers

No data available for the deliverable: Regulation of fintech, crypto assets and digital payment providers

No data available for the deliverable: Regulation of fintech, crypto assets and digital payment providers

No data available for the deliverable: Regulation of fintech, crypto assets and digital payment providers

No data available for the deliverable: Regulation of fintech, crypto assets and digital payment providers

No data available for the deliverable: Regulation of fintech, crypto assets and digital payment providers

Summary

Financial technology (fintech) companies offer digital payments, crypto trading, peer-to-peer lending, robo-advice and other services. Because they use novel business models and technology, traditional financial regulation does not always apply cleanly. South Africa's regulators - the FSCA, SARB, FIC and SARS - have been building a layered regulatory framework covering licensing, consumer protection, anti-money laundering compliance and tax reporting for these new players. The FSCA has been licensing crypto asset service providers (CASPs - firms that offer crypto trading, custody, exchange or advisory services) since April 2023. The OECD Cryptoasset Reporting Framework (CARF) and Common Reporting Standard (CRS) regulations (requiring crypto firms to report client tax information to SARS for tax compliance purposes) were published in September 2025 and are effective from March 2026. The Draft Capital Flow Management Regulations 2026 (published 17 April 2026) introduce additional exchange control obligations for crypto asset firms.

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Is it working?

Fintech and digital finance regulation is active and maturing. Crypto asset service providers (CASP) licensing is now well-established. The layering of multiple regulatory obligations on crypto firms creates a comprehensive but complex compliance environment. The Draft Capital Flow Management Regulations 2026 have generated material concern from industry about provisions covering mandatory declaration of crypto asset holdings, purpose requirements and potential asset forfeiture. The public comment period (deadline 10 June 2026) will be decisive in calibrating the final framework.

Actions

Compliance rates high for licensed providers. Sector audit outcomes positive. CASPs (crypto asset service providers) are subject to FSCA licensing, FIC anti-money laundering obligations, SARS reporting requirements under Crypto Asset Reporting Framework (CARF) and Common Reporting Standards (CRS) and now exchange control obligations under the draft regulations. SARB/FSCA sector audit updates and fintech licensing information are published in regulatory circulars. The COFI Bill, once enacted, will provide a more comprehensive and consolidated framework for digital financial service providers.

Are there plans?

Annual sector audits, licensing reviews and industry stakeholder workshops are planned. The COFI Bill, once enacted, will provide a more comprehensive permanent framework for digital financial service providers.

Is it on the agenda?

Yes. Fintech regulation is a standing priority in National Treasury's digital finance strategy, the FSCA's regulatory plan and SARB's market oversight work.

Goals

To create a clear, comprehensive regulatory framework for financial technology (fintech) companies and digital financial service providers (including crypto asset service providers, digital payment platforms and peer-to-peer lenders) ensuring they are properly supervised, consumers are protected and legitimate innovation is supported.

Documents

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) South African Reserve Bank (SARB)

Analyst: Tinashe Kambadza
Status: In progress
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