SARB responds to CATASTROPHE Coalition over draft stablecoin rules
SARB says its stance on stablecoins is not settled as it responds to Luno and the CATASTROPHE coalition's cross-border crypto objections.
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What to know:
- The South African Reserve Bank (SARB) has stated that its approach to stablecoins is “not settled” in its first public response to the CATASTROPHE coalition.
- The central bank confirmed it is actively reviewing public input on draft cross-border rules before the September 30 deadline.
- Luno’s South Africa Country Manager, Christo de Wit, highlighted that the campaign aims to reopen constructive dialogue rather than fight regulators.
The South African Reserve Bank has confirmed in a public reply to the South African crypto industry coalition, CATASTROPHE, that its official stance on stablecoins is unfinalised.
In a response to TechCentral, SARB said it is still working with other regulators and the treasury on the draft requirements, “including the approach to stablecoins.” SARB also added that it is monitoring developments in the local and global crypto landscape to “inform our approach and regulatory response.”
The South African central bank also reiterated that the public comment period is still open and that “the draft manual, as well as the draft capital flow management regulations, 2026, remain subject to refinement following the consideration of all public comments and stakeholder engagements.”
What CATASTROPHE Wants
On Wednesday, 9th September 2026, South African crypto leaders such as Luno, VALR, EasyEquities and AltCoinTrader launched CATASTROPHE (Crypto Asset TaskForce for Advancing Sound, Technology-Neutral Regulation for Opportunity, Prosperity and a Healthy Economy).
CATASTROPHE’s primary concerns centre on rules that would ban South African companies from using digital assets such as stablecoins for international business payments. The coalition also objects to proposed restrictions on transferring crypto assets from an individual’s self-custody wallet to a local exchange.
The coalition, referencing sentiments echoed by SARB governor Mr Lesetja Kganyago, calls for a level playing field. It asks that crypto activity be regulated based on financial risk, not the underlying technology. As of the time of writing, CATASTROPHE’s petition has gotten support from over 160 organisations and 3800 individuals.
Luno, EasyEquities and VALR: Industry Reactions Split on Tone
Speaking to TechCentral, Christo de Wit, Country Manager for Luno South Africa, clarified that the coalition and its campaign are an invitation to SARB and the treasury to “enhance its direct engagement with industry on the proposed changes.” He also said he’d like the regulators to “consider the implementation of the alternative approach proposed by the coalition.”
He warns that the current draft requirements pose a risk to South Africa’s regulatory environment and the “progress South Africa has made in bringing digital assets into the supervised ecosystem.” In his words, Luno believes “the current draft falls short” of applying equivalent regulatory treatment to equivalent economic activity.
In a public post on X, VALR called on people to “learn how the draft regulations would affect you,” and to spread the word about the coalition and its goals, framing it as “critical for progress, jobs, and economic growth in South Africa.”
The head of EasyCrypto, EasyEquities’ crypto arm, Earle Loxton, said that while he understands regulators are trying to navigate “genuine challenges around cross-border capital flows,” he thinks the draft “conflates different problems.”
He objects to how the draft lumps together legitimate and reportable transactions with transactions that pose a genuine regulatory evasion risk.
What’s Next
Public comment on the draft manual remains open until the 30th of September 2026. After that, SARB and South Africa’s National Treasury will consider the submissions as it revises the manual. CATASTROPHE has made it clear that it will disband once it secures a better regulatory outcome.
