DA Finance Chief Resigns from Key Roles Amid Forex Probe

In a significant development, Dr. Mark Burke, the Democratic Alliance's finance chief, has stepped away from his influential positions on two critical parliamentary committees as the South African Reserve Bank (SARB) investigates his fintech company, Kastelo, over possible foreign exchange control violations.

On August 19, 2025, Burke voluntarily resigned from his roles in the Standing Committee on Finance and the Standing Committee on Appropriations, taking action in response to growing concerns regarding a potential conflict of interest. This decision marks a notable shift after initial support from Deputy Finance Minister Ashor Sarupen and party leadership.

Kastelo, co-founded by Burke and his brother Nicholas, has faced scrutiny for its operations, which allegedly involved transferring R4 billion out of the country to engage in large-scale crypto trading. The SARB froze Kastelo's accounts amid claims that the company may have breached South Africa’s exchange control regulations.

Burke's initial defense of his position was challenged by revelations regarding the company's practices, which reportedly exploited legal foreign exchange allowances for crypto arbitrage. This involved converting South African rands to foreign currency, acquiring cryptocurrency at lower offshore prices, and re-selling it locally at higher rates, thereby sharing profits with clients. The SARB’s Financial Surveillance Department is investigating these transactions, suspecting they may contravene existing laws.

In light of these allegations, the DA caucus debated Burke's continued involvement but ultimately decided he should step down for the integrity of the party. Sarupen acknowledged the serious nature of the conflict of interest concerns, stating Burke's decision to withdraw from the finance cluster was made with the party's best interest in mind.

Despite stepping aside, Burke maintains his innocence, asserting he has distanced himself from Kastelo's day-to-day operations. In a statement, he emphasized, "I have and will act ethically and lawfully, and I am confident that once the SARB’s inquiry is complete, it will find no wrongdoing on my part." He also clarified that he ceased serving as chairperson of Kastelo in February 2026 and that he resigned from the company in 2024 to pursue a political career.

As the investigation continues, the SARB's actions come amid a broader move to modernize South Africa's forex regulations and establish a framework for cryptocurrency management. The latest judicial decisions indicate the evolving landscape of crypto in relation to monetary policy, as Judge Stuart Wilson ruled that cryptocurrencies, such as Bitcoin, qualify as both money and capital under current exchange control regulations.

Burke's academic background, including a PhD in econometrics from Cambridge, and his recognition as one of South Africa's "100 Brightest Young Minds" in 2010, add another layer of complexity to this unfolding situation.

Source: www.dailymaverick.co.za