Why South Africa?
Advantages
- Economic growth. It is expected that the South African GDP will grow by 1.9% in 2025, which is higher than in previous years (0.8% in 2024). The medium-term growth is expected to be 1.8% from 2025 to 2027.
- Ease of entry to the market. Low barriers to entry: company registration is carried out in a few days and costs about USD 10, the minimum share capital is not established, and there are no annual fees for a license. This makes South Africa an accessible solution for startups and pilot projects.
- Developing ecosystem. Cryptocurrency activity in South Africa is steadily growing — here P2P exchanges, wallets, exchanges, and fintech has been holding the leadership in venture investment volumes on the continent for several years. There is a local demand and market.
- Moderate time for legalization. Obtaining a license for a cryptocurrency company may take 3 to 6 months.
Restrictions
- Absence of centralized cryptocurrency regulation. The South African approach to cryptocurrency regulation differs from other jurisdictions such as the EU or UAE, where centralized regulatory regimes operate. In South Africa, regulation is carried out through the addition of already existing legal norms in the field of finance, combating money laundering and other industries.
- There is no special regulation in relation to mining and DAO. For some, the absence of strict rules may be an advantage, but for those who value transparency and clear regulatory frameworks, uncertainty can be a serious obstacle.
- Relatively high level of corruption. According to the Corruption Perceptions Index, South Africa ranks 82nd out of 180 countries by corruption level. At the same time, the situation is improving year by year.
Who is South Africa suitable for
- Token issuers.
- Cryptocurrency exchanges and exchanges.
- P2P platforms.
- Cryptocurrency wallets and depositories.
Cost
The level of costs for legalization in the jurisdiction is low.
- Stamp duty for company creation: its size depends on the type of company, the price starts from USD 10. Share capital: the minimum size is not established.
- Stamp duty for considering an application for a license: from USD 140 to USD 2,550.
- Annual stamp duty for a license: absent.
Main stages of legalization
Company registration in South Africa
- Collection and preparation of necessary documents.
- Choosing a company type.
- Company registration (carried out online)
Cryptolicense issuance in South Africa
- Payment of registration fee.
- Preparation and submission of documentation for obtaining a license.
- Consideration of the application by the regulator and final approval.
- Registration on a special platform as a liable person in the context of compliance with AML-требований.