2025’s global regulatory strides created a foundation for deeper integration of crypto and traditional finance.
South Africa and several major global markets rolled out extensive crypto-currency regulatory reforms in 2025, marking a shift toward tighter oversight and deeper institutional participation in digital assets.
Local exchanges interviewed by ITWeb say the combined momentum reshaped the regulatory landscape at home and abroad.
Christo De Wit, South Africa country manager at Luno, highlights the country’s removal from the Financial Action Task Force (FATF) grey list in October as a pivotal development.
He says the expansion of the Financial Intelligence Centre’s powers, along with new beneficial ownership disclosure requirements, has strengthened the regulatory environment while supporting industry growth.
“From a regulatory perspective, stablecoins meet the definition of a financial product under the Financial Sector Regulation Act in South Africa, as they function as digital representations of fiat currency,” says De Wit.
See also
After a May 2025 High Court ruling confirmed that existing exchange control rules do not cover crypto-currencies, Luno urged regulators to update classifications so that digital assets such as Bitcoin are treated as “onshore” when held by licensed local providers.
According to De Wit, such changes would open the door to institutional allocations, bring in an estimated R500 million in tax revenue, and enable retail savers to gain limited exposure through regulated investment products.
“Luno advocates for clear, pragmatic crypto regulations to unlock economic growth and investor access. While the US considers allowing Bitcoin into workplace pension plans, South Africa is still debating whether collective investment funds can invest in Bitcoin at all. This cautious stance risks leaving South African investors excluded from legitimate growth opportunities.”
De Wit also commends South Africa for adhering to global standards, including the FATF Travel Rule, implemented in May 2025, and notes that regulatory direction in the US also shifted meaningfully this year.
US president Donald Trump issued an executive order aimed at opening the digital-assets sector to a more supportive policy framework. “While it didn’t immediately establish a strategic Bitcoin reserve, it directed the evaluation of a national digital asset stockpile.”
He adds that the appointment of crypto-friendly regulators further signalled a notable change in approach. “The passage of the GENIUS Act [Guiding and Establishing National Innovation for US Stablecoins Act] in June laid out clear guidelines for banks and companies wishing to issue stablecoins.”
Farzam Ehsani, CEO and co-founder of VALR, shares the optimistic outlook, saying 2025’s global regulatory strides created a foundation for deeper integration of crypto and traditional finance.
He says the GENIUS Act’s stablecoin rules and commodity classifications represent an important step toward innovation with consumer protection.
In South Africa specifically, he points to the Travel Rule rollout, the exit from the FATF grey list, the High Court ruling on exchange control, and the FSCA’s licensing of more than 200 crypto-asset service providers as signs of regulatory maturity.
“These milestones, along with many other regulatory advances across the globe, affirm crypto’s long-term growth potential, converging with legacy systems to empower billions by reducing the frictions from our currently very fragmented global financial system,” Ehsani says.
David Porter, general manager of AltCoinTrader, says progress locally has been evident across the FSCA, SARS and the South African Reserve Bank. “From a regulatory perspective, locally we have seen progress on three fronts, that spans the FSCA, SARS and the SARB.
“Crucially, in October 2025, the FSCA issued Information Request 2 of 2025, mandating all licensed and provisionally registered CASPs to submit detailed operational and risk data. I believe this signals the FSCA’s commitment to mature oversight and informed regulation going forward.”
Porter says the most consequential move came from the South African Revenue Service, which in November announced the adoption and future implementation of the OECD Crypto-Asset Reporting Framework.
The global standard will require local crypto asset service providers to share crypto-related tax data automatically with tax authorities.
He adds that ongoing uncertainty around exchange controls was underscored by the May 2025 High Court judgement in the Standard Bank versus SARB matter, which found that crypto assets do not qualify as “currency” or “capital” under current regulations − and therefore do not require SARB approval for cross-border transfers.
“While the SARB has appealed this decision, the ruling underscores the urgent need for the SARB and National Treasury to provide clarity on cross-border crypto flows,” says Porter.
