South African Judge Exposes the Absurdity of Using Apartheid-Era Laws for Crypto

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In an unexpected turn of events, a South African judge has taken aim at the South African Reserve Bank (SARB), accusing it of using long-forgotten apartheid-era laws to regulate cryptocurrencies. Who knew the past could still haunt us so?

Judge: Apartheid-Era Laws Have No Place in Crypto World

In a recent ruling that might just make you question how the past still clings to the present, Judge Mandlenkosi Motha of the High Court gave the South African Reserve Bank (SARB) a thorough dressing down for clinging to exchange control laws from the apartheid era to control the shiny new world of cryptocurrencies. As if the 15 years of crypto history somehow slipped under their radar.

The judge’s frustration is understandable, considering the Exchange Control Regulations (Excon) were first brought into existence back in 1961, back when even the word “cryptocurrency” was more likely to get you a confused stare than a digital wallet. Motha boldly asked whether such archaic laws were still “fit for purpose” when it comes to the modern age of decentralized digital currencies. Spoiler: they aren’t.

“Cryptocurrency has been in existence for over 15 years; one cannot say SARB has been caught napping,” the judge remarked, practically rolling his eyes at their lack of foresight. “In the same way intellectual property had its special spot in exchange control regulations, cryptocurrencies deserve some attention too. What’s next, using telegraphs to regulate emails?”

The case stemmed from a rather messy situation where Standard Bank, a local institution with quite the hefty financial claims, found itself at odds with the SARB. The bank was attempting to seize assets from a client who owed a whopping $2.28 million (around 41 million rand, for those counting) when the SARB swooped in with its trusty Excon Act to halt the proceedings. The catch? Standard Bank believed cryptocurrencies didn’t fall under the Excon umbrella—because, spoiler alert, they don’t. The bank argued Finsurv’s claims of violating foreign exchange laws were, well, out of place.

As Mybroadband reports, SARB seized assets following an investigation where it was alleged that the client had violated the Exchange Control Laws by buying Bitcoin and moving it across borders. Standard Bank, however, argued that those very laws don’t even apply to cryptocurrencies, so Finsurv’s action was as misplaced as your grandma trying to use a TikTok filter.

In addition to taking a sharp jab at the SARB’s outdated approach, the judge also threw in a little extra sass, challenging whether cryptocurrencies can even be considered “money” in the first place. “Cryptocurrency is not money,” he declared. “Saying it is, based on the definition of money (which includes foreign currency), is, quite frankly, a stretch. Let’s not get carried away here, folks.”

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2025-06-01 14:01