South African financial institutions will now be allowed to deal with funds linked to digital assets and shouldn't indiscriminately block all crypto clients, the country's central bank said.

Banks in the country "may act as a conduit for funds" tied to crypto asset service providers and "may play a role in customers wishing to purchase" or "receive payouts in fiat currency" in their bank accounts for the sale of crypto, the South African Reserve Bank (SARB) said in new guidelines published this week.