This evening I was reading South Africa's new proposal regarding crypto regulations for travelers entering or leaving the country with cryptocurrency. I actually had to read it twice as I was not sure what I read made much sense the first time around. The second time around it showed how moronic the government are and nothing has changed due to them not understanding crypto is borderless.
Any traveler leaving or arriving in South Africa has to declare their crypto or face up to 5 years imprisonment. The new regulations will allow officials invasive powers to search all devices for crypto including phones and if you are stupid enough to carry one a cold wallet.
Officials will have full authority to conduct search and seizure operations with the National Treasury updating their Exchange Control Regulations from 1961 updating crypto assets as capital. This places crypto in the same category as foreign currencies and gold. For anyone crossing the border in or out they need to declare any crypto assets in their possession or under their control/ownership.
The proposal requires those travelling to produce upon request any data or device that would store or help facilitate crypto transactions. Failure to do so could result in a R1 million fine or up to 5 years imprisonment.
The officials have the powers to check luggage and your vehicle if you drove and parked this at the airport. If anyone is suspected of moving crypto assets without declaring these devices can be seized with the assets within. This made me chuckle a bit as they are absolute idiots thinking this is possible. Crypto found undeclared can be forfeited to the state.
What they are trying to do is enforce capital controls on outflows thinking they are preventing this from these intrusive measures. How can crypto on a blockchain be declared at a border crossing because the blockchain is global and can be redeemed in any country of your choice.
The new crypto proposal needs to have feedback from stakeholders by June 10th 2026 before moving forward and signed into law. All this tells us is how desperate the SA Government are trying to boost their coffers that are empty due to rampant corruption. They would love to steal everyone's crypto and why you would have to be a complete idiot to have a crypto footprint in South Africa.
I will travel with no worries and would not be stupid enough to travel with any type of cold wallet because that is what they will be looking for. We all know better than that and we also know you can buy one wherever you are and key in your passwords and your portfolio is safe and sound. Let these morons think if they take your cold wallet they have your crypto because it is not that simple.
Another part of the proposal which also sounds ludicrous is that their will be a threshold one cannot exceed and would be forced to sell the excess to the authorities (National Treasury) at a price not revealed. You would have 30 days to sell them to the Treasury or an authorized dealer they control being paid out in South African Rands. This will be discussed again on the 18th May and if found favorable will also be implemented as law.
You cannot make this up as who can tell you that you have too much crypto and that you have to sell it? This is an investment and long term hold so this is why they have no understanding of what crypto is and only see dollar signs.