Standard Bank Group (JSE:SBK) and the South African Reserve Bank (SARB) are at the centre of a legal and regulatory dispute over how crypto assets should be treated under South Africa’s exchange-control regime after the Pretoria High Court found that cryptocurrencies do not fall within the existing definitions of money or capital, Techpoint Africa reports.

The judgment, handed down on May 15, 2025 in “Standard Bank of South Africa v South African Reserve Bank and Others”, arose from a dispute involving Leo Cash and Carry, which transferred more than 4,400 Bitcoin to a Seychelles-based exchange. The assets were valued at about ZAR556mn ($31mn) at the time.

The court held that crypto assets could not be treated as conventional currency under the Exchange Control Regulations because they are not legal tender and exist as digital code rather than state-issued money.

The ruling exposed a potential regulatory gap in South Africa’s capital-control framework, as crypto assets were not clearly covered by exchange-control rules written long before the emergence of digital assets.

SARB has appealed the judgment, but the government has also moved to amend the rules. In his February Budget Speech, Finance Minister Enoch Godongwana said draft regulations would be published under the Currency and Exchanges Act to include crypto assets in South Africa’s capital-flow management regime.

SARB’s Financial Surveillance Department confirmed the move in Exchange Control Circular No. 3 of 2026, issued in March, saying the proposed amendments would bring crypto assets into the cross-border movement of capital framework.

The changes could require South Africans transferring crypto assets to foreign exchanges or non-residents to use existing offshore allowances, while larger transactions could require SARB approval.

Standard Bank Group is Africa’s largest bank by assets, providing retail, corporate and investment banking services across South Africa and 19 other African markets, as well as selected international financial centres.

The regulatory issue comes as South Africa remains one of Africa’s most active crypto markets. More than 5.8mn South Africans are estimated to own digital assets, with adoption driven by investment demand, rand volatility and the growth of crypto trading platforms.

The case also highlights the fragmented legal treatment of crypto assets in South Africa. The Financial Sector Conduct Authority classifies crypto assets as financial products, the South African Revenue Service taxes them as assets, and SARB is seeking to regulate their cross-border movement under exchange-control rules.

The next phase of the dispute is likely to centre on the draft regulations and whether the new framework defines crypto assets clearly enough to withstand further legal scrutiny.