Trader Drops 1,680 BTC Fight as South African Court Classifies Bitcoin as Capital
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A South African High Court ruled that bitcoin can be legally treated as “capital” and a “negotiable instrument” (a form of money) because it holds value, is used for speculation, and is accepted by merchants.
Key facts
In his application challenging the forfeiture, Mangundhla argued that bitcoin does not constitute capital, money or a security as defined in the Currency and Exchanges Act of 1933 and the Exchange
The ruling, which came days after the South African Reserve Bank issued a statement asserting that cryptocurrency is not a medium of exchange, stems from a case brought by a cryptocurrency trader
The cryptocurrency was seized after the South African Reserve Bank (SARB) determined that trader Square Mangundhla had violated sections of the Exchange Control Regulations
South Africa’s National Treasury and central bank have assured the crypto industry that proposed capital-flow regulations will not criminalize digital…
Summary
Judge Wilson ruled on June 1 that Square Mangundhla’s 1,680 bitcoins were lawfully seized as capital. The decision clashes with a May 2026 SARB and FSCA statement denying crypto’s status as legal tender. Expect tension ahead as South African regulators navigate this new legal framework for digital assets. A South African High Court has ruled that bitcoin can be treated as capital because it satisfies the definition of a financial asset capable of holding value or serving as a medium of exchange.