On 28 May 2026, the National Payment System Department of the South African Reserve Bank (SARB) and the Financial Sector Conduct Authority (FSCA) issued a joint communication relating to the use of crypto assets for domestic payment purposes (Joint Communication).
The purpose of the Joint Communication is to clarify that crypto assets (which includes stablecoins) used for payments in accordance with the declaration of crypto asset as a financial product in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS):
- are not considered payments in terms of the National Payment System Act, 1998 (NPSA);
- currently fall outside the application of the NPSA; and
- are neither money as defined in the NPSA nor funds and are therefore not legal tender.
The scope of the Joint Communication is limited to crypto assets that are used for domestic payments, including payment of goods and services, and person-to-person, person-to-business or business-to-business payments within South Africa and does not extend to cross-border payments.
The FSCA continues to process licensing applications under FAIS relating to crypto assets, including for payment-type activities, provided that these activities fall within the definition of ‘financial services’ under FAIS. However, a licence granted by the FSCA under FAIS does not include the regulation, supervision and oversight of crypto assets used for payments as contemplated under the NPSA, which is still subject to further policy and regulatory framework development by the SARB.
It remains incumbent on crypto asset service providers (CAPSs) licensed by the FSCA to adhere to all the applicable requirements under FAIS. Licensed CASPs must also communicate clearly and unambiguously with financial customers regarding the limited scope and nature of the activities for which they are licensed by the FSCA (noting that these activities do not constitute legal tender).
A copy of the Joint Communication can be accessed here.
