Australia is one of the few countries taking this seriously, reshaping its laws to make digital assets safer while still allowing the industry to grow. South Africa isn’t far behind either, but the question now is whether it can keep pace.
Why Australia Sets the Bar
Australia’s approach to crypto has created a stable environment across the sector. Payments are faster, security standards are stronger, and users have more confidence when handling digital assets. This stability also supports areas like tokenised rewards, NFT-based games, and other online entertainment services that depend on quick, low-cost transactions.
As the rules became clearer, more crypto-based entertainment platforms developed in a natural way. In gaming, for example, players can use Bitcoin for in-game items or cross-border purchases without delays. The same applies to casino platforms that accept Bitcoin, where deposits and withdrawals work through the same reliable system. These Bitcoin casinos benefit from regulatory improvements since they allow players to access games more easily and with fewer payment hurdles.
(Source: https://www.cardplayer.com/au/online-casinos/best-bitcoin-casinos)
Every exchange that wants to operate in Australia must now register with AUSTRAC under the Anti-Money Laundering and Counter-Terrorism Financing Act. New draft laws also require crypto platforms handling tokens like financial products to obtain an Australian Financial Services Licence, or AFSL. Earlier this year, the Australian Securities and Investments Commission (ASIC) rolled out a full set of rules. These cover licensing, how platforms hold client assets, and tighter controls on stablecoins and token platforms.
Australia basically treats crypto like traditional finance. The result is, more investors are drawn in, and suspicious characters are kept out.
Where South Africa Stands
In 2022, the South African Reserve Bank recognised the need for clear rules concerning crypto assets. It wasn’t until 2023, though, that the Financial Sector Conduct Authority (FSCA) officially classified crypto assets as financial products. By early 2024, the FSCA had approved about 59 licences for crypto companies. The South African Revenue Service (SARS) confirmed that crypto is taxable, giving investors and traders clear guidance on reporting, that same year.
The FSCA and the Reserve Bank are also working together on rules for stablecoins. Their goal is to make sure these digital tokens are safe to use for payments. This work is mainly happening through the Intergovernmental Fintech Working Group (IFWG). South Africa is also taking part in global discussions about using state-issued digital currencies for cross-border payments through the Bank for International Settlements.
A May 2025 court ruling stated that crypto doesn’t fall under existing Exchange Control Regulations. This complicates things a bit, but there’s still a hearing to determine if that’s the final word. However, it currently means that the country’s laws still can’t cover everything. So yes, South Africa is actively working in the right direction, but the legal framework isn’t fully finished yet.
The Gaps That Still Need Closing
The most obvious gap between the two countries is legal clarity. Australia already integrates crypto into its existing financial frameworks, while South Africa’s laws still have open ends. Without a clear line on what counts as compliant or not, investors are left uncertain, and uncertainty is poison for market growth.
Enforcement is another hurdle. Australia has already started revoking licences when exchanges don’t meet compliance standards. South Africa’s FSCA is building its enforcement tools, but the machinery is still new.
Custody and investor protection are also areas demanding attention. Australian regulators require crypto firms to protect client assets. These firms have to publish transparent reporting and meet operational standards. South Africa is talking about similar protections, but hasn’t laid down firm rules yet. Although it has approved operating licences for cryptocurrency firms, the number is quite small compared to the market potential.
But things are still looking good. Now that it was removed from the Financial Action Task Force (FATF) grey list in October 2025, it shows that South Africa is no longer a high-risk market. It was placed there initially because its laws didn’t fully meet global anti-money-laundering standards. Getting off it shows real progress. It shows that South Africa no longer carries the reputation of a high-risk market. Now the real test is keeping that progress going.
Why South Africa Could Still Pull It Off
Even with these gaps, South Africa has strong cards to play. It’s one of the most sophisticated financial sectors in Africa. Its cryptocurrency market, as of 2024, is $11.18 billion. This figure is expected to rise to around $25.66 billion by 2033. A growing population of crypto-curious users is already trading, staking, or experimenting with blockchain payments. So, basically, there’s already a foundation ready to scale once the rules are clear.
Africa needs a leader in safe digital finance. South Africa, if it faces regulations, could become the continent’s crypto hub, bringing in startups, investors, and even exchanges from all over.
It’s also worth noting that South Africa’s cautious pace might work in its favour. By watching how Australia handles things, from licensing to enforcement, it can avoid the same pitfalls.
What South Africa Can Learn from Australia
If South Africa wants to match Australia’s progress, it doesn’t have to reinvent the wheel. Australia’s approach is a good example to follow. The first step is adding crypto rules to the financial laws that are already in place, instead of making completely new ones. This helps to avoid confusion.
The second step is being predictable. Yes, rules will need to be enforced consistently, and there must be clear consequences. When Australia revoked licences for firms that didn’t follow the rules, it showed they meant business.
Australia, most importantly, focuses on protecting investors. Its 2025 reforms highlight custody protection, operational transparency, and accountability. With 417 registered digital‑currency exchanges and over 5,000 remittance service providers under supervision, the system is built to earn trust. South Africa doesn’t have to copy this word-for-word, but following the same spirit would go a long way.
