Inside Crypto Arbitrage

A Low-Risk Opportunity for South African Investors

As cryptocurrencies continue to gain mainstream traction, savvy investors are searching for new ways to profit from the volatility and inefficiencies of global crypto markets. One strategy rising in popularity—particularly in South Africa—is crypto arbitrage: exploiting price differences between local and international exchanges.

I recently spoke with Quintus Swart, Head of Product and Innovation at Fynbos Finance, to unpack the mechanics of crypto arbitrage and explore its growing appeal.

“Arbitrage has been around for ages,” Swart explained. “It’s the act of buying an asset in one market and simultaneously selling it in another for a profit. In crypto, especially in South Africa, price discrepancies can range between 1% and 3%, driven by supply, demand, and regulatory differences.”

Unlike traditional trading—which relies on volatility—crypto arbitrage profits from market inefficiencies. In South Africa, cryptocurrencies often trade at a premium due to capital controls and strong local demand. Swart noted that Fynbos executes trades by buying crypto abroad at a lower price and selling it locally, capturing a near risk-free return for clients.

Fynbos’s crypto arbitrage product has seen strong growth in recent years, a success Swart attributes to both the opportunity in the market and the company’s regulatory foresight.

“The regulation issued by South Africa’s Financial Sector Conduct Authority [FSCA] helps legitimize and protect the crypto space. It assures investors that operators are compliant and ethical,” Swart said. “This kind of legitimacy builds trust and opens the door to traditional investors who’ve been cautious until now.”

With Category II CASP licensing in hand, Fynbos is now positioned to work with both retail clients and financial advisors. Swart sees this as a major turning point:

“Financial advisors can now consider crypto arbitrage as part of a diversified portfolio. But like any product, they need to understand the risks, how it works, and whether it’s right for their clients.”

He also emphasized the importance of client education, particularly when it comes to regulatory requirements such as South African tax residency, compliance, and foreign investment allowances. The firm handles all aspects of the trading and compliance process, making it a “one-stop shop” for investors.

Still, arbitrage isn’t without risk.

“While it’s considered low risk, it’s not zero-risk,” Swart cautioned. “The biggest concern is counterparty risk, since trades depend on multiple entities—from local and international banks to crypto exchanges—working in sync within a tight 24–48-hour window. We mitigate this by using only regulated, vetted partners.”

Fynbos has also invested heavily in automation and operational efficiency, allowing it to execute trades swiftly and accurately. This ensures clients receive the best possible returns, even within the narrow margins that define arbitrage strategies.

Looking ahead, Swart anticipates greater institutional involvement as regulations mature globally, which may lead to increased competition and demand for more advanced trading infrastructure.

For those curious but hesitant about entering the space, Swart offered this final encouragement:

“Crypto arbitrage offers a compelling opportunity for consistent returns, especially when managed through structured and transparent systems. If you’re interested, reach out. We’ll walk you through the process, answer your questions, and help determine if it fits your financial objectives.”

How South Africans Are Earning Low-Risk Returns in a Complex Market

As crypto goes mainstream, South African investors are increasingly exploring new ways to benefit from global market inefficiencies. One of the most effective—and often misunderstood—opportunities right now is crypto arbitrage: buying crypto where it’s cheaper and selling where it’s more expensive.

We spoke with Quintus Swart, Head of Product and Innovation at Fynbos Finance, to unpack what this strategy involves, why it’s booming in South Africa, and how investors can get involved.

“Arbitrage has been around for decades,” says Swart. “You buy an asset in one market and sell it in another at a profit. In crypto, we’re seeing price differences of 1–3% between global and local markets—mainly due to regulatory factors and demand here at home.”

Why South Africa?

Thanks to capital controls, strong local demand, and limited on-ramps, South Africans often pay a premium for crypto assets. This creates a consistent pricing gap between offshore and local exchanges.

“At Fynbos, we tap into these gaps. We buy crypto internationally—where it’s cheaper—and sell it locally to capture that spread. It’s low-risk, but not no-risk,” Swart explains.

Managing Risk the Right Way

Crypto arbitrage doesn’t rely on speculation or market timing—it profits from inefficiencies. But executing it well requires precision and trust.

“Every trade depends on a tight 24-hour window involving global banks, local banks, and crypto exchanges. If one party drops the ball, the trade could fall through. That’s why we only work with vetted, regulated partners—and why operational speed is critical,” says Swart.

Fynbos has invested heavily in automation and operational controls to execute trades quickly, securely, and accurately—giving clients the best possible outcomes within the narrow margins that define arbitrage.

Regulation, Compliance, and Confidence

Fynbos is fully licensed as a Category II Crypto Asset Service Provider (CASP) under South Africa’s Financial Sector Conduct Authority (FSCA)—a major step toward bringing structure and trust to the space.

“The FSCA’s regulation gives people confidence. It opens the door to traditional investors and financial advisors who were previously cautious about crypto,” Swart notes.

With this regulatory clarity, Fynbos now works with both individual investors and financial advisors looking to incorporate crypto arbitrage into diversified portfolios.

“Like any product, advisors need to understand how it works, the risks involved, and whether it fits their client’s profile,” he adds.

A One-Stop Solution for Investors

Fynbos handles the full arbitrage process—from onboarding and compliance, to foreign investment allowances and trade execution.

“It’s a plug-and-play model. You focus on your financial goals, and we take care of the rest,” says Swart.

Curious About Crypto Arbitrage?

If you’re looking for consistent returns outside of traditional markets, crypto arbitrage may be worth exploring.

Reach out to the team at Fynbos Finance - we’ll walk you through how it works, answer your questions, and help assess whether it’s the right fit for your portfolio.