South Africa’s Financial Intelligence Centre has announced Directive 9, a regulatory measure aimed at strengthening cryptocurrency transaction oversight. This directive, set to take effect on April 30, 2025, will require digital asset platforms to collect and store identity information for all cryptocurrency transactions. The goal is to help South Africa improve compliance and remove its name from the Financial Action Task Force’s (FATF) grey list.
Being on the FATF grey list impacts South Africa’s global reputation, raises the costs of financial transactions, and increases borrowing expenses for the country. Directive 9 is seen as a critical step toward addressing these challenges by enforcing stricter regulatory standards for cryptocurrency activities.
Under the directive, platforms must record the full names and wallet addresses of both parties involved in a transaction. For transactions exceeding $277 (or 5,000 Rand), even stricter data collection and storage requirements will apply. Sean Sanders, CEO of Altify, welcomed the move toward regulation but raised concerns about the low transaction threshold, noting that it is one of the lowest globally for similar measures.
This regulatory step signifies South Africa’s commitment to aligning its financial practices with international standards, ensuring transparency and reducing risks associated with money laundering and illicit activities in the digital asset market.
