South Africa's National Treasury has drafted legislation bringing cryptocurrency under its capital flow regulatory framework. The proposed rules mandate declarations for holdings above specified thresholds and impose strict controls on cross-border transactions.

The draft bill requires crypto asset holders to declare qualifying holdings within 30 days, with provisions for forced liquidation of assets acquired for undeclared purposes. Authorities will expand enforcement capabilities, including penalties for non-compliance through authorized financial providers.

This regulatory shift mirrors global trends of bringing digital assets under traditional financial oversight. Market participants anticipate potential short-term volatility as the measures take effect, particularly for assets like BTC and ETH that dominate South African trading volumes.