The South African Reserve Bank’s November 2025 draft Directive in respect of specific payment activities makes a subtle but material change to the way “e‑money” is defined and supervised.
This change has direct implications for fiat‑referenced crypto assets, including stablecoins, and could bring certain issuers squarely within the scope of the Draft Authorisation Framework.
The Earlier Position: March Draft Tied “E‑money” to General Acceptability
In the March 2025 version of the Draft Directive, the term “e‑money issuer” was defined as an entity that issues electronically stored monetary value upon receipt of funds. The definition further clarified that the “value” is represented by a claim on the issuer, which is “generally accepted as a means of payment by persons other than the issuer and is redeemable for physical cash or a deposit into a payment account, on demand”.
This definition mirrored the definition of e-money in the E-Money Position Paper published by the SARB in 2009, which defined e-money as electronically stored monetary value represented by a claim on the issuer, issued on receipt of funds, and - crucially - “generally accepted as a means of payment by persons other than the issuer”.
It is the “generally accepted” requirement which previously allowed stablecoins to escape the ambit of e-money regulation. Stablecoins are increasingly being adopted as a means of payment, but are arguably not yet “generally accepted” in South Africa.
The Position in the November Draft
The November draft moves away from the “generally accepted” limiting principle. E‑money is now defined as a store‑of‑value product that is a digital representation of fiat currency, is a claim on the issuer and is redeemable at face value on demand. In terms of the November draft, e-money “may be accepted as a means of payment by persons other than the issuer or be accepted within the issuer’s network or ecosystem.” In other words, acceptance can be limited to a closed network; “general acceptability” is no longer a definitional requirement.
A fiat‑referenced stablecoin that (i) is a digital representation of fiat, (ii) constitutes a claim on the issuer and (iii) is redeemable at par, could therefore fit the e‑money construct - even if acceptance is limited.
Consequences if Stablecoins Are in Scope
If stablecoin issuers are treated as “e‑money issuers”, a number of compliance obligations will be imposed on such issuers in terms of the Draft Authorisation Framework.
Two immediate consequences stand out.
First, authorisation. Stablecoin issuers that meet the November definition would likely need to be authorised as e‑money issuers, with tiering by scale and associated ongoing compliance. This is a material shift for token issuers who have not previously operated within the payments licensing perimeter.
Second, reserves and safeguarding. Client funds received for token issuance would need to be held in segregated trust accounts at regulated banks, with strict limits on the use of those funds. This has direct implications for reserve composition and yield strategies.
What to Do Now
The definitional change is small but significant. It increases the likelihood that certain fiat‑backed stablecoin models - especially those offering par redemption against an identified issuer - are treated as “e‑money” for the purposes of the Draft Authorisation Framework, triggering licensing, prudential, safeguarding, clearing/settlement and compliance obligations.
Comments on the November draft are due by 5 December 2025. ENS can assist industry participants in drafting and submitting comments, including on the scope of the “e‑money” definition.
Should your organisation need assistance with reviewing its services against the newly published draft authorisation framework, to determine which services will fall within the scope of the current draft and understand the compliance obligations that would apply, get in touch with the team below.
Angela Itzikowitz
Executive | Banking and Finance
Era Gunning
Executive | Banking and Finance
Amelia Warren
Associate | Banking and Finance
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Read the original publication at ENS
