A Johannesburg High Court judge has delivered a landmark ruling that places Bitcoin firmly within South Africa’s exchange control regime after finding that cryptocurrency is both “money” and “capital” under the country’s financial laws.
The judgment, handed down by Judge Stuart Wilson on Monday, is likely to send shockwaves through South Africa’s cryptocurrency market, especially among traders who use digital assets to move value across borders.
At the centre of the case was Square Mangundhla, who used his Luno account and that of Fungai Dangaiso to move just under 1 680 Bitcoin, bought in South Africa, to cryptocurrency wallets accessible through exchanges registered outside the country.
The Bitcoin was worth just under R182-million.
SARB cries unlawful capital export
The South African Reserve Bank (SARB) argued that the transactions amounted to the unlawful export of capital without Treasury permission.
The bank later declared just under R6 million in Bitcoin assets and money standing to the applicants’ credit in their Standard Bank and Luno accounts forfeited to the state.
Mangundhla and Dangaiso approached the court to review and set aside the forfeiture orders.
Their central argument was that the Exchange Control Regulations did not apply to cryptocurrency because Bitcoin was neither money, capital, currency nor a security.
‘Bitcoin has real-world financial value’
Wilson disagreed, finding that Bitcoin had real-world financial value despite its digital nature.
“In these circumstances, it seems to me that Bitcoin is plainly capital in the sense that it is a financial asset that is capable of holding value and being used as a medium of exchange,” Wilson said.
The judge said cryptocurrency could not escape regulation merely because it was intangible, technological or not issued by a central bank.
He said submissions suggesting otherwise “entail a degree of magical thinking which misconstrues the nature of money, underplays the destructive effects of unregulated capital flows, and ignores the fundamental purpose of the Exchange Control Regulations”.
Earlier court decision ‘was clearly wrong’
The ruling directly contradicts a 2025 Pretoria High Court judgment in Standard Bank of South Africa v South African Reserve Bank, where the court found that cryptocurrency was neither money nor capital for exchange control purposes.
Wilson said that earlier decision was clearly wrong.
“It seems to me, however, that the point in issue has less to do with the inherent nature of cryptocurrency than with the purposes to which it can be put,” he said.
“To the extent that cryptocurrency is a financial asset that holds value and is used as a medium of exchange through which capital can be taken from within South Africa and placed beyond its borders, it does not matter that it may not be legal tender.”
‘Bitcoin must be regulated’
The court found that failing to regulate Bitcoin as capital would leave South Africa’s exchange control system exposed.
“Were it otherwise, those controls would be virtually worthless, as anyone of any means who wished to take their money abroad could do so without Treasury oversight, simply by converting it into cryptocurrency and transferring it to a foreign cryptocurrency exchange,” Wilson said.
The judge also rejected the argument that Bitcoin had not been exported because the wallets could be accessed from anywhere in the world.
“Plainly, once the Bitcoin was placed beyond the Reserve Bank’s jurisdiction, it was exported,” he said.
‘Bitcoin can be forfeited’
In another significant finding, Wilson held that Bitcoin could also be forfeited because it fell within the meaning of money under the regulations.
“In my view, Bitcoin is clearly money. The Bitcoin was correctly subject to forfeiture,” he said.
The court dismissed the review application with costs, including the costs of two counsel.
Although Wilson expressed some hesitation about the forfeiture order against money in Dangaiso’s bank account, he said no case had been made that the order was disproportionate.
The judgment now gives the Reserve Bank a powerful precedent to pursue crypto-related exchange control breaches.
- A Johannesburg High Court judge ruled that Bitcoin qualifies as both "money" and "capital" under South Africa's exchange control laws, subjecting cryptocurrency to regulation and restrictions.
- The case involved Square Mangundhla moving nearly 1,680 Bitcoin (worth about R182 million) to foreign crypto wallets, which the South African Reserve Bank (SARB) claimed was unlawful capital export without Treasury approval.
- Judge Stuart Wilson rejected arguments that cryptocurrency falls outside exchange controls, stating Bitcoin has tangible financial value and can be regulated despite being digital and not issued by a central bank.
- The ruling overturned a 2025 Pretoria High Court decision that said cryptocurrency was neither money nor capital, emphasizing the real-world use of crypto to transfer capital abroad justifies regulation.
- The judgment confirms Bitcoin can be subject to forfeiture for exchange control violations, empowering SARB to enforce crypto regulations and recover assets in future cases.
A Johannesburg High Court judge has delivered a landmark ruling that places Bitcoin firmly within
At the centre of the case was Square
Wilson disagreed, finding that Bitcoin had real-world financial value despite its digital nature.
“In these circumstances, it seems to me that Bitcoin is plainly capital in the sense that it is a financial asset that is capable of holding value and being used as a medium of exchange,” Wilson said.
He said submissions suggesting otherwise “entail a degree of magical thinking which misconstrues the nature of money, underplays the destructive effects of unregulated capital flows, and ignores the fundamental purpose of the
Wilson said that earlier decision was clearly wrong.
“It seems to me, however, that the point in issue has less to do with the inherent nature of cryptocurrency than with the purposes to which it can be put,” he said.
“To the extent that cryptocurrency is a financial asset that holds value and is used as a medium of exchange through which capital can be taken from within
“Were it otherwise, those controls would be virtually worthless, as anyone of any means who wished to take their money abroad could do so without Treasury oversight, simply by converting it into cryptocurrency and transferring it to a foreign cryptocurrency exchange,” Wilson said.
“Plainly, once the Bitcoin was placed beyond the Reserve
In another significant finding, Wilson held that Bitcoin could also be forfeited because it fell within the meaning of money under the regulations.
“In my view, Bitcoin is clearly money.
