South African Judge Criticizes Central Bank’s Use of Apartheid-Era Laws for Crypto Regulation

A High Court judge in South Africa has sharply criticized the South African Reserve Bank (SARB) for its reliance on outdated exchange control laws from the apartheid era to regulate cryptocurrencies. The judge deemed these laws unfit for overseeing the dynamic and modern cryptocurrency market.

The ruling highlights the growing tension between legacy financial regulations and the rapid evolution of digital assets. Cryptocurrencies, designed to operate beyond traditional banking frameworks, often clash with antiquated legal systems that fail to address their unique characteristics.

This decision could signal a shift toward more nuanced crypto regulation in South Africa, potentially influencing other jurisdictions grappling with similar challenges. The case underscores the need for legal frameworks to adapt to technological innovation rather than stifle it.