Soda Labs

South Africa

A travel rule that starts at any value above zero

JurisdictionMiddle East & AfricaRestricts anonymity

Anonymity-enhancing assets or unattributed transfers are barred outright, or barred for regulated firms.

What South Africa actually says

The most precisely drafted travel rule in this section, and the one that leaves least room. Where other regimes debate where to set a minimum, South Africa defined a qualifying transfer as any crypto asset transfer above zero, then used its R5,000 line to reduce how much data is required rather than whether the rule applies at all. Providers must refuse to execute where they cannot comply. Self-custody is treated the way most of the world treats it (a risk category requiring documented policy, not a prohibition), and 2026 guidance singles out peer-to-peer and wallet-to-wallet transfers as higher risk. The tightening arrived alongside the country's exit from the FATF grey list in October 2025, which is the usual pattern.

The instruments that matter

Directive 9 of 2024, in operation 30 April 2025
defines a qualifying transfer as one involving a crypto asset which is any value above zero, so full originator identification travels with every single transfer
Below R5,000
a reduced dataset applies and need not be verified absent money-laundering suspicion; the threshold reduces the data, it does not switch the rule off
Paragraph 4.8
bars execution of a transfer where the rule cannot be met
Section 8 and PCC 61 of 2026
unhosted wallets require documented risk-based policies rather than prohibition, with peer-to-peer and unhosted-to-unhosted transfers flagged as heightened risk

What this means for confidential transactions

Bubble is built for exactly this shape of obligation: amounts and balances live on chain as ciphertexts, computation happens without decryption, and the only disclosure path is an on-chain access list through which an authorized party - an auditor, a supervisor, a counterparty - can request scoped decryption. That is confidentiality from the public, not from the regulator.

Compliant by default.

See how selective disclosure satisfies a supervisor without publishing your book to the world.