04/06/2026
Bitcoin shakeup: Landmark ruling holds that cryptocurrency is both “capital” and “money”
In a landmark ruling on cryptocurrency handed down on Monday, 1 June 2026, the Gauteng High Court dismissed an application to review and set aside forfeiture orders issued by the South African Reserve Bank against cryptocurrency and funds linked to the applicants. The Court held that Bitcoin constitutes both “capital” and “money” for purposes of the Exchange Control Regulations, 1961, and that transferring Bitcoin from South Africa to wallets hosted on foreign cryptocurrency exchanges amounts to the export of capital requiring Treasury approval. The first applicant had transferred approximately 1,680 Bitcoin, valued at about R182 million, to offshore exchanges without such approval, using both his own and the second applicant’s Luno accounts. Rejecting arguments that cryptocurrency falls outside the exchange control regime because of its digital and intangible nature, the Court found that Bitcoin is a financial asset capable of storing value and functioning as a medium of exchange, thereby falling squarely within the purpose and scope of the Regulations. The Court expressly disagreed with the earlier decision in Standard Bank of South Africa v South African Reserve Bank 2025 (5) SA 289 (GP), holding that it was clearly wrong to conclude that cryptocurrency is neither money nor capital. The Court further found no procedural unfairness in the Reserve Bank’s investigation and confirmed that Bitcoin is subject to forfeiture under the Regulations. Accordingly, the review application was dismissed with costs, including the costs of two counsel on Scale C.
Read the case here: https://www.saflii.org/za/cases/ZAGPJHC/2026/579.html