A South African High Court ruling determines that Bitcoin can be treated both as capital and as money under the Exchange Control Regulations, allowing forfeiture actions in cross-border crypto transfers.

Judge Stuart Wilson dismisses the traders Square Mangundhla and Fungai Dangaiso’s bid to overturn the SARB’s forfeiture of nearly R6 million tied to about 1,680 BTC valued around R182 million.

The case centers on the seizure of 1,680 bitcoins from Mangundhla in 2022, with the court affirming that the cryptocurrency qualifies as capital under the Currency and Exchanges Act and related regulations.

Regulators and banks are pushing for updates to rules, including discussions around the Draft Capital Flow Management Regulations and broader regulatory reform.

South Africa published draft Capital Flow Management Regulations for 2026, signaling ongoing regulatory developments in crypto and capital markets.

The ruling could set a precedent for future enforcement of crypto transfers abroad and hasten legislative reforms to address digital assets in financial regulation.

The article notes prior and related regulatory developments and directs readers to further sources and updates from BitKE.

The ruling signals ongoing regulatory tension in South Africa as authorities navigate a framework for digital assets, potentially shaping future enforcement and interpretations.

The decision marks a shift from a 2025 ruling that crypto fell outside capital controls, strengthening the SARB’s enforcement capabilities under exchange control laws.

The ruling reinforces the SARB’s authority over cryptocurrency movements and may influence future crypto rulings and compliance obligations in the country.

The decision supports ongoing plans to formally integrate crypto assets into South Africa’s capital-flow management framework and regulatory regime.

The ruling contrasts with a May 2026 joint SARB-FSCA statement that cryptocurrency is not legal tender and does not meet the definition of money under current law.