South Africa's Crypto Landscape to Change Significantly with New AML/CTF Regulations
South Africa's crypto landscape is set to change significantly with the upcoming implementation of international Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. Regulated crypto exchanges have begun alerting users to the impending changes, set to take effect on April 30, 2025.
The most notable change, known as the Travel Rule, will apply to all withdrawal amounts, regardless of value. Users will need to provide necessary information each time they initiate a withdrawal, unless the destination address is saved in their Address Book. This rule is a global AML/CTF requirement issued by the Financial Action Task Force (FATF) and is set to enhance Know Your Customer (KYC) measures and real-time monitoring in Africa's crypto sector.
The Financial Intelligence Centre (FIC) has issued Directive 9, setting the deadline for implementing the Travel Rule. Starting from this date, users can expect to enter specific information when initiating any crypto withdrawal. The South African Financial Sector Conduct Authority (FSCA), which formally recognizes crypto asset service providers, has also emphasized the importance of compliance with these regulations. These changes aim to prevent money laundering and terrorism financing via crypto assets, aligning Africa with global standards.
From April 30, 2025, all regulated crypto exchanges in Africa must implement the Travel Rule, requiring users to provide necessary information for each withdrawal. These changes, driven by Africa's recent greylisting by the FATF, aim to strengthen the continent's AML/CTF framework and enhance the security of its crypto sector.
