On April 30, 2025, South Africa officially implemented the FATF Travel Rule, requiring all registered crypto service providers (CSPs) to collect and share identifying information about both senders and recipients of cryptocurrency transactions. This marks a significant regulatory shift, aligning South Africa more closely with global anti-money laundering (AML) standards.
The rule is part of the broader framework established by the Financial Action Task Force (FATF) and adopted globally to combat money laundering and illicit financial activity in the crypto space. Under the new mandate, Virtual Asset Service Providers (VASPs) must collect and transmit verified customer data when processing transactions exceeding approximately 1,000 USD.
Authorities such as the Financial Intelligence Centre (FIC) and the Financial Sector Conduct Authority (FSCA) state that the move will enhance transparency in crypto transactions and support broader efforts to regulate the growing sector effectively.
What does the Travel Rule mean for users?
Crypto platforms in South Africa must now:
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Conduct enhanced KYC checks before processing transactions
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Share sender and recipient data with counterparties
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Flag or block non-compliant transactions
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Maintain detailed transaction records for inspection
While the new rules raise concerns about privacy and decentralization, South Africa is positioning itself as a leader in crypto compliance across the African continent.
You can read more on the implementation here:
Source: Notabene – May 2025
