Finance Minister Enoch Godongwana told parliament that the South African Reserve Bank (SARB) is looking into fintech company Kastelo for a possible breach of exchange-control rules. The alleged breach involves foreign-exchange transactions worth about R4 billion that were used to buy crypto assets abroad and later sold locally.
For small business owners and individual investors who have used Kastelo’s platform to move money across borders, the investigation could mean tighter scrutiny of similar services. If the SARB finds that the transactions broke the Exchange Control Regulations, the firm may face fines, restrictions on its accounts or even a shutdown, which would affect anyone relying on its crypto-arbitrage offering.
Exchange-control contraventions refer to actions that go against the rules governing how South Africans can buy, sell or move foreign currency. The SARB’s Financial Surveillance Department flagged a “reasonable suspicion” after an affidavit from an investigator highlighted transactions between 4 August and 21 November 2025. The probe started in October 2025 and may expand if more transactions are uncovered.
Kastelo was co-founded by Mark Burke, who served as the Democratic Alliance’s federal finance chair. Burke says he left the company in 2024 to pursue a political career and stopped being chair of the broader Kastelo group in February 2026. He insists he is not the chair of Kastelo Proprietary Limited, the entity at the centre of the litigation, and denies any personal investigation.
What triggered the SARB’s action?
According to the minister, the SARB’s case rests on two main points. First, it alleges that clients’ Single Discretionary Allowances, a small amount of foreign-exchange each South African can use annually, were used in transactions totalling roughly R6.7 million. Second, it claims that Foreign Investment Allowances, larger sums meant for approved overseas investments, were involved in transactions worth about R3.5 billion.
The SARB also says some clients may not have known that foreign bank accounts were opened in their names. Whether clients were aware is part of the ongoing investigation.
The investigation was sparked by a report from Access Bank, Kastelo’s authorised dealer. After a forensic review, Access Bank alerted the SARB to suspicious activity. The SARB then issued a blocking order in November 2025, stopping withdrawals from Kastelo’s Access Bank account. Kastelo challenged the order in the Gauteng Division of the High Court, but the court dismissed the challenge on 28 July 2026 and ordered Kastelo to pay the SARB’s legal costs. The judge ruled that a “reasonable suspicion” is enough for the SARB to act, even without proof of a breach at that stage.
Kastelo defends its model as a way for clients to profit from price differences between South African and international cryptocurrency markets. The company says it stopped offering the arbitrage service after the blocking order and denies keeping clients unaware of offshore accounts.
Godongwana said the SARB’s findings will decide whether the matter is referred to law-enforcement or other regulators. He also noted that an administrative enforcement action has already been taken, preserving roughly R15 million under the Exchange Control Regulations.
For entrepreneurs and fintech startups, the case highlights the importance of clear compliance with exchange-control rules, especially when dealing with crypto assets. Companies operating in this space may need to review their processes, document client consent, and ensure that any foreign-exchange transactions are fully transparent.
Small businesses that use fintech platforms for foreign-exchange or crypto transactions should watch the outcome of this probe. A finding of wrongdoing could lead to stricter oversight, higher compliance costs, or reduced access to certain services.
Readers who need to check whether their own operations comply with exchange-control regulations can use our compliance document generator. For more coverage of regulatory developments, visit the Regulatory & Policy section.
