South Africa's National Treasury published draft Capital Flow Management Regulations on April 17, marking a significant shift in how the country treats cryptocurrency. The proposed rules require all crypto holders to declare their holdings within 30 days of the regulations taking effect. Beyond disclosure, users must file the intended purpose for each transaction and face mandatory forced sales if they use their crypto differently than originally stated.

The penalties are severe: fines up to R1 million and prison sentences as long as five years. Border officials would gain new powers to search electronic devices and demand private keys - the cryptographic codes that control access to digital wallets. Public comment on these draft regulations closes June 10, giving South Africans roughly one month to weigh in before the rules potentially become law.