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South Africa’s Reserve Bank Flags Crypto and Stablecoins as a Material Financial Stability Risk

The warning cites surging retail participation with gaps in rules for USD‑pegged tokens.

Overview

  • The three largest local exchanges counted 7.8 million registered users by July 2025, reflecting rapid retail penetration.
  • Platforms held about $1.5 billion in client assets at the end of 2024, according to the central bank’s review.
  • USD‑pegged stablecoins have become the main trading pairs on South African platforms since 2022 due to lower price volatility.
  • The review warns that borderless digital assets could be used to bypass Exchange Control Regulations governing capital flows.
  • Policy gaps persist as the FSB notes no framework for global stablecoins, prompting the SARB to urge a coordinated national response despite FSCA licensing of crypto firms.