Crypto exchange Luno pushes back against Treasury's proposed regulations

Cryptocurrency exchange Luno has formally opposed parts of South Africa's draft Capital Flow Management Regulations, telling National Treasury and the South African Reserve Bank that sweeping crypto rule changes should be enacted by Parliament, not through ministerial decrees.

The exchange submitted its objections as part of the public consultation on Treasury’s plans to replace the country’s decades-old exchange control framework with new capital flow rules that would bring digital assets under direct oversight.

Key concerns raised

In an interview with The Money Show, Luno South Africa country manager Christo de Wit explained that while Luno supports clearer regulation, the draft policy treats all crypto assets identically. “One of the main issues that we have with it is that all crypto assets are seen as under one umbrella, and there's no differentiation between the different kinds of crypto assets. When we speak about stable coins or real world assets, there's no differentiation there,” de Wit said.

Luno’s submission argues that the proposed framework should only apply to crypto assets that cross South Africa’s borders. Locally purchased and held digital assets, the exchange says, should not be classified as offshore investments or be subject to exchange control rules.

De Wit added that the government needs to spend more time refining the policy. “I do think that there's a lot more thought process that needs to go into formulating regulation and especially far reaching regulations such as this,” he said.

The country manager also stressed the importance of following proper legislative process, noting that the industry has contributed significantly to economic growth, job creation and innovation in South Africa.