South African Reserve Bank Flags Crypto Assets And Stablecoins As Financial Stability Risk

The South African Reserve Bank now treats crypto assets and stablecoins as a direct financial stability risk.

In its second Financial Stability Review for 2025, the central bank adds them to the list of technology-driven threats to South Africa’s financial system.

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The report says users of South Africa crypto exchanges have grown fast. The three largest platforms together reported about 7.8 million registered users by July 2025. They also held around $1.5 billion in client assets at the end of 2024, according to the South African Reserve Bank.

Because of this scale, the bank now links crypto assets and stablecoins to broader South Africa crypto regulation questions.

It says these markets can influence capital flows, liquidity, and confidence in traditional channels. At the same time, it notes that the current rulebook does not fully cover these new products.

The report also stresses the borderless nature of crypto assets. It says that, due to their “exclusively digital – and therefore borderless – nature, crypto assets can be used to circumvent the provisions of the Exchange Control Regulations.” These regulations manage money moving in and out of South Africa.

According to the South African Reserve Bank, this feature of crypto assets and stablecoins can weaken existing controls. Money can move through wallets and South Africa crypto exchanges rather than local banks.

As a result, the bank sees higher financial stability risk if activity keeps growing without stronger South Africa crypto regulation.

The report warns that, under these conditions, “risks may build up undetected.” It links that warning to the need for clearer South Africa stablecoin regulation and more complete rules for crypto assets in general.

South African Reserve Bank Sees Stablecoins Reshaping South Africa Crypto Regulation

The South African Reserve Bank also describes a “structural shift” in how people trade on South Africa crypto exchanges. Until 2022, Bitcoin (BTC) and other large crypto assets were the main trading route. Since then, USD-pegged stablecoins have become the main trading pairs on local platforms.

The report says that stablecoins now dominate many order books. It states that “USD-pegged stablecoins have become the preferred trading pair on South African crypto asset trading platforms.”

The bank links this to the “notably lower price volatility of stablecoins compared to unbacked crypto assets.”

In practice, users on South Africa crypto exchanges now often move between stablecoins and tokens such as BTC, XRP, Ether (ETH), and Solana (SOL).

This pattern keeps trading active while holding value in dollar-linked units for part of the time. It also keeps local markets closely tied to offshore stablecoin issuers and foreign banking partners.

At the same time, this shift creates fresh questions for South Africa crypto regulation. The central bank notes that, while crypto assets such as BTC, XRP, ETH, and SOL already raise oversight issues, stablecoins add another layer. They combine features of payment instruments, bank deposits, and market instruments.

Because of that mix, the South African Reserve Bank treats stablecoins as a specific financial stability risk. The report says trading and holding in these products is growing, but South Africa stablecoin regulation still lags.

As a result, stablecoins may channel large cross-border flows without the same checks that apply in traditional finance.

The bank does not describe this shift as a positive or negative change. Instead, it sets out the data and links it to its broader financial stability risk map.

It places stablecoins alongside other crypto assets as a priority area for future South Africa crypto regulation.

Regulation Gap On Crypto Assets And Stablecoins Worries South African Reserve Bank

The South African Reserve Bank builds its warning on international assessments as well. It cites the Financial Stability Board (FSB), which tracks global risks for G20 members.

In an October report, the FSB said South Africa has “no framework in place” for global stablecoins and only “partial regulations in place” for crypto assets.

According to the South African Reserve Bank, this leaves a clear gap in South Africa crypto regulation. Activity on South Africa crypto exchanges and in stablecoins continues to grow.

However, South Africa stablecoin regulation and broader crypto assets rules remain incomplete. The bank links this mismatch directly to possible financial stability risk.

The report connects today’s stance to earlier caution. In 2017, deputy governor Francois Groepe said that issuing a central bank digital currency would be too risky at that time.

In 2025, the bank again highlights risks, this time from privately issued crypto assets and stablecoins, and from gaps in South Africa crypto regulation.

Yet the report also notes that other state bodies have moved on some fronts. In 2022, the Financial Sector Conduct Authority (FSCA) classified cryptocurrency as a “financial product.”

This step placed crypto assets inside the existing financial-product regime. It also allowed the FSCA to license firms that meet conduct and disclosure standards.