Michaela
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 majоr exсhanges, and gaps in the country’s crypto regulations.
Key Points
- 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
- 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
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.
Related: CFTC Opens Door for National Trust Banks to Issue Stablecoins
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 alsо come under greater oversight, meaning wallets and third-party services could face additional compliance obligations, possibly impacting ease of use and access.
Related: Judge Allows Insider Trading Lawsuit Against Coinbase Execs
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
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncovеr interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
