On 4 September 2025, the Johannesburg Stock Exchange (JSE) published proposed amendments to the Debt & Specialist Securities Listings Requirements (DSS). These changes, open for consultation until 6 October, represent a pivotal moment for Bitcoin adoption in South Africa’s capital markets. For the first time, the JSE has drawn a clear regulatory line: without regulated custody, there will be no listed Bitcoin products.
“At least 90% of the crypto asset(s) must be held in cold storage; or in arrangements that achieve an equivalent outcome to cold storage. In this instance, the issuer must, prior to listing and thereafter annually, submit to the JSE and publish on its website an audit report from a suitably qualified third party…” (Amendment Schedule DSS Requirements, September 2025)
Custody, once treated as a technical detail, is now recognised as the foundation of fiduciary trust. This shift aligns South Africa with global best practices seen in the EU, UK, and Australia, and it places a spotlight on who can provide compliant, auditable custody for Bitcoin in South Africa. Today, that responsibility falls squarely on SimplB — the only Bitcoin-only regulated custody services provider in the country.
Why the JSE is Acting Now
The JSE’s proposed rules follow years of concern over the risks posed by crypto assets in institutional products. In its consultation paper, the JSE highlighted the systemic issues that have kept Bitcoin ETFs and ETNs out of regulated markets until now:
- Price manipulation across fragmented, unregulated spot markets.
- Custody hacks that have historically wiped out billions in investor funds.
- Weak governance, leaving fiduciaries and trustees exposed to liability.
“There is a general view internationally that the spot market in crypto assets is vulnerable to market manipulation due to its proliferation across many different platforms, most of which are unregulated and not subject to any meaningful oversight.” (Amendments Paper DSS Requirements, September 2025)
The JSE has responded by introducing standards that address these risks head-on: requiring audited cold storage, AML/KYC-compliant custodians, and transparent, rule-based pricing indices. Importantly, this process has not been developed in isolation. The work of AltVest Capital — now Africa Bitcoin Corporation (ABC) — in collaboration with the JSE has been central to establishing the framework. As the first African listed company to adopt a Bitcoin Treasury Strategy, ABC’s pioneering role has helped shape the guardrails within which fiduciaries and corporates can now operate.
The Africa Bitcoin Corporation: Signalling a Shift
These regulatory changes arrive at the same time as the formal transition of AltVest Capital into the Africa Bitcoin Corporation (ABC). AltVest’s evolution reflects the integration of a Bitcoin Treasury Strategy, positioning ABC as the continent’s first listed Bitcoin Treasury company. The timing underlines the seriousness with which South Africa is now approaching Bitcoin custody and governance.
“We announce the full-scale adoption of a Bitcoin Treasury Strategy along with a suitable name change… This shift positions ABC as Africa’s first listed Bitcoin Treasury company, aligning with the Directors’ belief that Bitcoin provides a means to preserve value over time and serve as a hedge against both inflation and currency devaluation.” (ABC Investor Relations Memo, September 2025)
The alignment is striking: just as ABC declares its commitment to holding Bitcoin as a corporate reserve, the JSE has confirmed the standards under which such reserves must be safeguarded. Custody, auditability, and compliance are no longer optional. They are the conditions for participation in South Africa’s capital markets.
Breaking Down the JSE Custody Requirements
The proposed DSS amendments set out three clear requirements for any ETF or ETN referencing Bitcoin:
- 90% Cold Storage – Assets must be held offline or in arrangements with equivalent resilience.
- Custodian Regulation – Custodians must comply with AML/KYC regulations in South Africa or a recognised equivalent jurisdiction.
- Annual Audit – Independent third-party audits must verify compliance and equivalence to cold storage.
“The price of the spot crypto asset(s) for NAV purposes must be determined based on a crypto asset index of the spot crypto asset(s)… the crypto asset index rules must provide for an appropriate determination of the reference price, including the inclusion of multiple eligible CASPs when determining or selecting the reference price.” (Amendment Schedule DSS Requirements, Section 3.51)
This ties pricing integrity directly to custody integrity: if assets cannot be proven secure and auditable, they cannot form the basis of a listed financial product.
SimplB: Custody That Meets and Exceeds the JSE Standard
At SimplB, we’ve built our custody solution, SimplVault, around precisely these principles. Operating as a Juristic Representative (JR) under CAEP Asset Managers (FSP 33933), SimplB is the only Bitcoin-only licensed custody provider in South Africa. Our model combines the sovereignty of self-custody with the compliance and oversight demanded by regulators.
Key Features of SimplVault:
- 2-of-3 Multi-Signature Architecture – Eliminates single points of failure, ensuring resilience and redundancy.
- Self-Sovereignty – Clients always control their assets; SimplB holds an optional recovery key.
- Cold Storage by Default – Hardware wallets and offline backups secure keys physically and cryptographically.
- Regulatory Separation – Brokerage and execution handled under CAEP’s license; custody delivered through SimplB’s infrastructure.
- Auditability – View-only access for auditors and trustees allows independent verification of balances and transactions.
- Continuity – Keys can be distributed among trustees and fiduciaries to ensure intergenerational access.
Rule-Based Procurement and Named Accounts
Beyond custody, SimplB delivers regulated and auditable Bitcoin procurement. For listed entities and fiduciaries, every Bitcoin purchase is executed via named accounts at licensed exchanges, ensuring clear ownership trails. Funds are automatically converted at market rates, with the option to apply rule-based procurement strategies such as time-slicing large trades to reduce market impact.
This process not only ensures compliance with FAIS, CASP, and FATF Travel Rule standards, but also provides full transparency for fiduciaries, auditors, and regulators.
The Road Ahead
The JSE’s consultation period closes on 6 October 2025. But the direction is already clear: Bitcoin custody in South Africa must be robust, regulated, and auditable.
“Issuers of ETFs that directly or indirectly track or reference the performance of spot crypto asset(s)… must inform the JSE immediately if the crypto asset index that is used for the determination of the price of the crypto asset(s) is discontinued, or no longer complies with the criteria.” (Amendment Schedule DSS Requirements, Section 6.117)
SimplB is ready for this moment. By combining multi-signature self-custody with rule-based procurement, named account structures, and transparent auditability, we provide fiduciaries, corporates, and listed entities with a custody framework that aligns directly with the JSE’s vision for compliant Bitcoin products.
South Africa’s financial markets are entering a new era. Custody has become compliance. Compliance has become trust. With ABC pioneering the corporate adoption of Bitcoin and the JSE providing the regulatory framework, SimplB is the partner ready to enable secure, compliant, and sovereign Bitcoin reserves for the institutional era.
