South Africa Reserve Bank Flags Crypto Risks — What SHIB Holders Should Know

The South Africa Reserve Bank has flagged digital assets and stablecoins as emerging financial risks in its 2025 financial stability report, pointing to rising trading volumes, growing user numbers on major exchanges, and gaps in the country’s crypto regulations.

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Key Points:

The South African Reserve Bank flags crypto and stablecoins as emerging financial risks due to rising trading volumes, user growth, and gaps in regulations.
USD-pegged stablecoins are now the preferred trading pair on South African exchanges, overtaking Bitcoin and other cryptos due to lower volatility.
SHIB holders in South Africa may face increased KYC/AML scrutiny and oversight on exchanges and custody solutions, highlighting the importance of secure self-custody.

South Africa’s central bank noted cryptocurrencies and stablecoins as emerging risks to the country’s financial system in its latest Financial Stability Review, released Tuesday. The report noted that the combined user base across the nation’s three largest crypto exchanges reached 7.8 million by July, with roughly $1.5 billion held in custody at the close of 2024.

The report noted that South Africa’s Exchange Control Regulations, which govern the movement of funds in and out of the country, could be bypassed due to the borderless nature of digital assets. Their entirely digital structure, the bank said, makes cryptocurrencies vulnerable to exploitation that could circumvent existing financial controls.

The South African Reserve Bank also noted a “structural shift” in the country’s crypto market, citing a marked increase in stablecoin trading since 2022. While Bitcoin and other cryptocurrencies previously dominated trading activity, the report found that USD-pegged stablecoins have emerged as the preferred trading pair on South African exchanges, largely due to their lower price volatility compared with unbacked digital assets.

SHIB Holders Alert: South Africa Reserve Bank Flags Crypto Oversight

For SHIB holders in South Africa, the central bank’s warning signals potential changes ahead in how cryptocurrencies are bought, sold, and held. Increased scrutiny or new regulations could affect local exchanges that list SHIB, potentially limiting trading options or adding stricter know-your-customer (KYC) and anti-money-laundering (AML) requirements.

Custody solutions might also come under greater oversight, meaning wallets and third-party services could face additional compliance obligations, possibly impacting ease of use and access.

While SHIB itself is decentralized and operates independently of any central authority, tighter financial regulations could influence how easily South African residents can move SHIB on- and off-ramp through exchanges.

Holders may need to stay informed about evolving rules and consider how to secure their tokens safely, whether through self-custody or compliant service providers. Overall, the central bank’s stance emphasizes the growing attention regulators are giving to digital assets like SHIB.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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