Overview: What is changing?
On 17 April 2026, the National Treasury and the South African Reserve Bank (SARB) published the draft Capital Flow Management (CFM) Regulations. These proposed rules are intended to replace the outdated Exchange Control Regulations of 1961.
The draft formally classifies crypto assets as "capital". While the government has stated an intent to modernise and move toward a risk-based system, the current draft includes several new requirements for reporting, surveillance, and enforcement.
How this affects you as a customer?
Status: These regulations are currently in draft form and are not yet final law.
No Current Changes: There are no changes to how you can transact on VALR today. You can continue to trade, deposit, and withdraw as usual.
VALR’s Position: VALR, alongside other industry participants, is reviewing the draft. We note that certain provisions - such as the mandatory sale of assets and the disclosure of private keys - may have important implications for users and the broader ecosystem. We intend to raise these concerns through the public comment process and welcome the opportunity to collaborate with the regulators.
1. General Information
Q: Is the new Capital Flow Management Regulation law yet?
A: No. It is a draft bill open for public consultation. It only becomes law once it is officially gazetted by the government - this is after the consultation period ends and the regulator has considered the public comments. We will keep you updated on any progress.
Q: When is the deadline to have my say?
A: The National Treasury has set a deadline of 30 June 2026 (previously 18 May 2026) for public comments. Please read our blog post here as well as the FAQs below. Given the potential impact, we strongly encourage all our customers to review the draft regulations and share their views. You can email your comments directly to: commentdraftlegislation@treasury.gov.za.
2. Proposed Transaction & Reporting Rules
Q: What is the "determined threshold" mentioned in the draft?
A: The draft suggests that certain rules (like mandatory declarations) only apply above a "determined threshold." However, this threshold has not yet been defined by the Minister of Finance. Until this value is set, it is not clear what the full impact of the regulations will be in practice. We will communicate the details as soon as they are made available.
Q: What is the 30-day declaration requirement?
A: The draft proposes that any resident of South Africa holding crypto assets above the threshold must declare them in writing within 30 days of acquisition, stating when and how the crypto was acquired and where it is held.
Q: What is the "mandatory sale" or "repatriation" rule?
A: One of the proposals suggests that if crypto is acquired for a specific purpose and that purpose is no longer valid, or if a person holds assets above the threshold, the Treasury may require the assets to be sold back for South African Rand.
Q: Can VALR freeze my funds or restrict access to my VALR account under the draft regulations?
A: As mentioned, there are no changes to how you can transact on VALR today. You can continue to trade, deposit, and withdraw as usual. As is standard, we may still review, delay, or restrict transactions where required to comply with applicable law, or for security, fraud prevention, or risk management reasons - but this is not specific to the draft regulations.
3. International Transfers & Allowances
Q: Can I still move crypto to my private "self-custody" wallet?
A: Currently, yes. However, the draft proposes increased oversight of certain crypto asset transactions, particularly those involving transfers outside of authorised service providers or across borders. Depending on how the final regulations are implemented, some transfers - including to self-custody wallets - may be subject to additional requirements or may be treated as capital flows in certain circumstances.
4. Privacy & Enforcement
Q: Can the government demand my "seed phrase" or "private keys"?
A: The current draft includes provisions allowing enforcement officers to search individuals at borders and, in certain circumstances, demand "full particulars in writing of all and any passwords, personal identification numbers or codes which are necessary to enable National Treasury to obtain access to and control over the crypto assets and their disposal" if they suspect a violation.
Q: How does the bill affect my private customer information?
A: VALR takes customer privacy and data protection seriously. We do not share customer information unless we are legally required or permitted to do so, or where it is necessary for compliance, security, fraud prevention or regulatory purposes. If the regulations become law and introduce new reporting or declaration requirements, we will explain clearly what information is required, why it is required, and how this affects customers.
Q: What happens if I don’t comply with the new rules once they are law?
A: The draft proposes significant penalties, including fines of up to R1,000,000 (or the value of the asset) and/or up to 5 years of imprisonment.
5. Next Steps
Q: What should I do right now?
A: Continue transacting as usual: There are no immediate changes to VALR’s services.
Review the draft: Visit the National Treasury website to read the full draft regulations.
Submit your feedback: If you think these proposals could impact you and how you use crypto, we encourage you to make your voice heard before the 30 June 2026 deadline.
Q: How will VALR keep me informed?
A: We are committed to transparency. We will provide updates via our official blog, email newsletters, and updates to this FAQ page as the regulations are refined and eventually implemented.
If you have any further questions, please contact our Support team here