The South African Reserve Bank (SARB) has decided to throw a tantrum (aka file an appeal) after the Pretoria High Court dared to question the use of ancient, apartheid-era laws to regulate the dazzling world of cryptocurrency. How quaint! The central bank, which apparently loves a good legal loophole, is now desperately trying to stop what could very well be the great escape of unlimited funds via crypto. After all, who wouldn’t want to make South Africa’s financial security just a tad more… flexible?
SARB Claims the High Court Missed the Crypto Bus
On June 2, the SARB publicly declared that the High Court made a colossal blunder. According to SARB, the court’s earlier decision, which allowed Standard Bank to snatch Bitcoin from clients, was utterly misguided. The court, SARB argues, failed to recognize that cryptocurrencies should be treated as either money or foreign currency— a tiny oversight when dealing with South Africa’s exchange control regulations. But hey, who needs accuracy when you can just apply laws from the 1980s, right?
The legal drama began in May, when Standard Bank took the plunge and sued SARB, the Minister of Finance, Nedbank, and even the liquidators of Leo Cash and Carry (LCC). Standard Bank was just trying to retrieve funds from 2022, before LCC was spectacularly liquidated. Nothing says ‘financial stability’ like a good liquidation.
And here’s the kicker: LCC, in a move that can only be described as ‘bold’, transferred 4,400 Bitcoins—valued at a cool R566 million—to the Seychelles-based Huobi Global exchange. SARB insists that this action is the very definition of a violation of South Africa’s foreign exchange control laws. I mean, who wouldn’t think so?
SARB Stubbornly Defends Regulation 22C
Meanwhile, the Pretoria High Court, under the leadership of Judge Mandlenkosi Motha, has stated that Regulation 22C—the relic from apartheid times—is simply not fit for purpose in 2025. Judge Motha made it clear that trying to regulate modern finance with these dusty old laws is a bit like trying to use a horse-drawn carriage for a Formula 1 race.
But of course, the SARB is not one to bow to modernity. They have vehemently defended the idea that Regulation 22C is still valid, insisting that it gives the Reserve Bank the right to block crypto transactions that seem even remotely suspicious. You know, just in case anyone tries to sneak money out of the country. You can never be too careful when dealing with Bitcoin and its sneaky ways.
Crypto Experts Say SARB Might Be a Little Out of Touch
Industry expert Harry Scherzer, clearly unimpressed, chimed in with his opinion. He pointed out that the SARB is probably missing the point entirely:
“It was pretty obvious that the Reserve Bank dropped the ball here. What they’re doing is basically opening the floodgates for people to sidestep exchange control. You can just send all your money out of the country in crypto and convert it into dollars! And I’m sure a few people have already done just that. Whoops!”
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2025-06-05 16:12