VALR’s Ehsani Warns Crypto Curbs Could Reduce Regulatory Oversight

Corporate Limits and Illicit Flow Risks

South Africa’s new proposed cross-border cryptocurrency framework risks severely damaging the domestic digital asset industry and driving financial activity underground unless key provisions are substantially revised, according to Farzam Ehsani, co-founder and chief executive officer of VALR.

Commenting on the joint draft crypto asset manual released by the National Treasury and the South African Reserve Bank (SARB), Ehsani cautioned that attempting to apply decades-old capital controls to modern technology threatens employment, local investment, and business innovation.

While acknowledging positive adjustments in the draft—specifically that a reportable event is triggered upon withdrawing funds from a crypto asset service provider (CASP) rather than at the initial asset purchase—Ehsani said the proposals remain prejudicial to licensed local operators.

“South Africa would be better served by abolishing exchange controls altogether while preserving appropriate reporting, transparency and regulatory surveillance, rather than attempting to retrofit a half-century-old regulatory regime onto modern technology and the digital economy,” Ehsani told Bitcoin.com News.