In recent developments, the Financial Intelligence Centre (FIC) has introduced Directive 9, a groundbreaking regulation aimed at ensuring transparency in crypto asset transactions in South Africa.

Per Directive 9, effective 30 April 2025, this directive enforces the travel rule, aligning South Africa with international standards set by the Financial Action Task Force (FATF).

Notably, the new FIC travel rule mandates that crypto asset service providers (CASPs) share originator and beneficiary information during transfers. According to the FIC, this aims to “ensure that the transfer or receipt of crypto assets is not used for money laundering, terrorist financing, and proliferation financing purposes.”

Key Obligations Under FIC Directive 9:

Secure Data Sharing: CASPs must securely transmit required information before or simultaneously with any crypto asset transfer.

Record-Keeping: Both ordering and recipient CASPs are obliged to maintain detailed transaction records for regulatory scrutiny.

Cross-Border Compliance: Cross-border transactions remain subject to South African exchange control regulations, adding another compliance layer.

Notably, Institutions failing to adhere to the FIC Directive 9 face administrative sanctions under section 45C of the FIC Act. The directive follows a public consultation process initiated in April 2024, during which industry feedback was considered and incorporated where appropriate.

Implications for South African CASPs

Notedly, the FIC emphasized that compliance with Directive 9 does not exempt CASPs from other legal obligations, urging providers to seek legal advice for cross-border transactions.

Accordingly, the move underscores South Africa’s commitment to combating financial crimes and safeguarding the integrity of its financial systems. As the FIC highlights, “It is important to note that in effecting the obligations in the travel rule directive, CASPs remain obliged to also comply with any other applicable legislation involving crypto assets and participants should obtain independent legal advice in this regard.”