South Africa’s Crypto Future at Stake as Luno Fights for Balanced Regulations

TLDR: South Africa’s draft Capital Flow Management Regulations propose approval requirements for all crypto transactions above a set threshold. Luno is preparing a formal submission urging the National Treasury to classify locally held crypto assets as onshore assets. The draft rules require users to declare all crypto holdings within 30 days of the regulations taking effect in South Africa. Luno is collaborating with industry stakeholders to present a unified response aimed at shaping a fair and practical regulatory outcome. Luno is calling for a fairer regulatory framework as South Africa’s National Treasury reviews its draft Capital Flow Management Regulations. The proposed rules introduce new controls on crypto asset transactions, including approval requirements and declaration obligations. Luno, a licensed crypto asset service provider in South Africa, has raised concerns about the practical effects these rules may have on everyday users. The exchange is preparing a formal submission to the Treasury and is working alongside industry stakeholders to shape a more balanced outcome. Why Luno Is Pushing Back on the Draft Rules The draft regulations propose extending exchange control requirements to all crypto asset transactions. This goes beyond the traditional scope of South Africa’s existing capital flow rules. Ordinarily, such controls apply when capital moves across borders, not within the country itself. Under the current proposal, any transaction to buy, sell, borrow, or lend crypto above a yet-to-be-determined threshold would need National Treasury approval. This applies even to transactions between two parties located within South Africa. Luno argues that this level of oversight is disproportionate for domestic activity. LunoGlobal has stated publicly that while it supports modernising the ageing exchange control framework, the current draft poses hurdles for everyday crypto users. These hurdles, the exchange warns, could slow South Africa’s growth as a g...