South Africa's National Treasury has proposed the Draft Capital Flow Management Regulations 2026, sparking criticism from industry leaders who argue it mirrors outdated economic controls. The draft, which replaces 1961 rules, introduces stringent digital asset controls, including potential fines of 1 million rand for non-compliance. Critics, including VALR CEO Farzam Ehsani, warn these measures could drive away crypto investment and criminalize routine digital asset ownership. The proposal has been described as a retreat from liberalization goals, with concerns over mandatory declarations and expanded enforcement powers. Regulation 8 could force crypto holders to sell assets for rand, while Regulation 4 allows for extensive searches and seizures. The lack of clarity on surrender thresholds and the categorization of crypto assets as foreign assets have also been criticized. Industry experts fear these regulations could deter tech entrepreneurs and lead to international travel advisories against South Africa.