The South Gauteng High Court in Johannesburg has made a landmark ruling for Bitcoin. It noted that BTC is “money” and “capital” under the South African exchange control framework. This Bitcoin court ruling could impact the legal standing of crypto transactions involving overseas transfers.
The ruling was made following an application filed by crypto trader, Square Mangundhla and Fungai Dangaiso. They aimed to set aside a forfeiture order issued by the South African Reserve Bank (SARB) after it transferred Bitcoin to foreign cryptocurrency exchanges.
Court Says SARB Forfeiture Is Valid
The disagreement was based on transfers made between January 2018 and March 2020. These transactions involved nearly 1,680 BTC valued at about R182 million that were sent to wallets linked to crypto exchanges overseas.
SARB stated that the transactions were equivalent to the export of capital without the relevant exchange control authorities’ approval. Later, authorities sought to seize crypto assets and money related to the case.
The Bitcoin court ruling finally came in favor of the central bank and against the attempts to suspend the forfeiture order.
Judge Wilson Makes Major Bitcoin Court Ruling
The main issue in the case was whether Bitcoin has been considered to be money or capital under Regulation 10(1)(c) of the Exchange Control Regulations.
Judge Stuart Wilson stated: ‘The central question in this case is whether cryptocurrency (in this instance Bitcoin) constitutes either “money” or “capital” for the purposes of section 10 (1) (c) of the Exchange Control Regulations, 1961. I conclude that it is both.”
The court considered the practicalities of Bitcoin as it allows it to be bought with South African rand. Also, it noted that BTC can be kept as an investment and can be exchanged for value.
“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,” wrote Wilson.
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Why Is The Latest Bitcoin Court Ruling Important?
The Bitcoin court ruling in the recent case may impact South African crypto investors in several ways. The decision treats Bitcoin as money and also a capital asset.
So, the court noted that digital assets subject to the same exchange control as other capital assets leaving the country. The decision could also have ramifications for upcoming regulatory cases with cross-border crypto trading.
Offshore Transfers Are Still Under Control
The court dismissed claims that Bitcoin’s decentralisation means it doesn’t come under the exchange control laws currently in place.
Judge Wilson warned, “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.”
The Bitcoin court ruling also addressed whether the BTC assets were exported. For this, the court held: “Plainly, once the Bitcoin was placed beyond the Reserve Bank’s jurisdiction, it was exported.”
In addition, the Bitcoin court ruling differs from the High Court’s decision in 2025. At the time, it stated that crypto was not money or means of exchange under South Africa’s capital control laws.
Also Read: South Africa Clarifies Cross-Border Crypto Rules Amid Industry Criticism
