Economist Dawie Roodt Warns South Africans May Drop Local Currency as Crypto Rules Tighten

South Africa’s National Treasury defended proposed crypto capital flow rules amid claims that digital assets could be seized. The rules include new reporting requirements for crypto holders, potential requirements to declare holdings above an unspecified threshold, and provisions critics say could compel sales to the government. Officials could search and seize if they suspect breaches, and offenders could face jail time. Dawie Roodt warned that harsh capital rules will backfire by driving local users toward cryptocurrencies and stablecoins. He said blockchain enables cheaper cross-border transfers and direct asset control, and that regulators cannot enforce measures requiring private keys or access to self-custodied wallets.

"The regulations will also empower officials to search and seize if they suspect a breach, while offenders face possible jail time. Roodt said such measures are unenforceable because regulators cannot compel people to reveal private keys or access to selfcustodied wallets. This is such a stupid idea. How are they going to get into my head? he said. They want to force me to give them my passwords, and they want to force me to open up my phone or my computer."

"Roodt was commenting on Treasury's proposed Capital Flow Management Regulations, which include new reporting requirements for crypto holders and provisions that critics say could allow the state to expropriate digital assets. As previously reported by Bitcoin.com News, under the proposed regulations, residents holding crypto above an unspecified threshold would be required to declare it and could be compelled to sell it to the government. The regulations will also empower officials to search and seize if they suspect a breach, while offenders face possible jail time."

"Efficient Group director and chief economist Dawie Roodt has said the continued reliance on exchange controls will push citizens toward cryptocurrencies and stablecoins unless the system is dismantled. He said the blockchain technology has already made it easier and cheaper for people to move money across borders while giving them more direct control over their assets. The economist insisted that attempts by the National Treasury or the South African Reserve Bank to restrict that shift would ultimately fail, he said."

"Don't these people understand that the world has moved forward, and that there are new technologies? They cannot stop me anymore, Roodt remarked. Roodt said such measures are unenforceable because regulators cannot compel people to reveal private keys or access to selfcustodied wallets. He argued that the nature of blockchain technology renders traditional"

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