South African Court Rules Bitcoin as Capital and Currency Under Forex Regulations

A South African court has ruled that Bitcoin can be considered both capital and currency under the country's foreign exchange control regulations. According to Foresight News, the ruling by the South Gauteng High Court in Johannesburg states that transferring Bitcoin to overseas exchanges or accessible wallets can be seen as capital outflow, requiring approval from the South African Treasury. The decision was made in a case where the court dismissed an application by cryptocurrency traders Square Mangundhla and Fungai Dangaiso to overturn a seizure order by the South African Reserve Bank (SARB). Judge Stuart Wilson determined that the applicants had transferred nearly 1,680 Bitcoins to foreign cryptocurrency exchanges between 2018 and 2020, amounting to unauthorized capital export without Treasury approval, thus violating the Foreign Exchange Control Regulations. The seizure of assets worth approximately 6 million Rand was deemed lawful and valid.