South Africa's National Treasury and the South African Reserve Bank (SARB) have extended the deadline for public comments on proposed capital-flow regulations affecting cryptocurrencies to June 30, 2026. The extension follows industry concerns that the draft regulations could criminalize digital asset ownership and impose retrospective obligations. The Treasury clarified that the regulations aim to modernize exchange controls by including crypto assets within the system, shifting from a pre-approval model to a risk-based framework. Despite assurances from the government, the draft has faced backlash from exchanges and advocacy groups, who fear it could impose severe penalties and grant excessive powers to border officials. VALR CEO Farzam Ehsani criticized the draft for potentially reversing regulatory progress. The Treasury plans to publish a draft manual detailing which cross-border crypto transactions will be subject to controls, emphasizing that the regulations are not intended to criminalize ownership or force asset disposals.