Luno Responds to Reserve Bank and Treasury on Proposed Crypto Regulations

Luno has submitted its response to South Africa’s proposed Capital Flow Management Regulations, urging policymakers to adopt a balanced approach that supports innovation while addressing financial crime and illicit capital flows.

The submission follows the publication of draft regulations by the National Treasury and the South African Reserve Bank (SARB), which seek to bring cross-border crypto asset transactions within South Africa’s capital flow management framework. The public consultation formed part of the government’s broader effort to modernise exchange control rules and improve oversight of digital assets.

Rather than opposing regulation, Luno said it supports a clear and predictable framework. However, the company cautioned that certain proposals could create operational challenges for licensed crypto businesses and reduce South Africa’s competitiveness in the digital asset sector.

Luno Calls for Practical Crypto Regulations

In its submission, Luno welcomed the government’s willingness to consult industry participants before finalising the regulations. The exchange argued that effective regulation should protect the financial system without creating unnecessary barriers for compliant businesses and users. Luno also encouraged regulators to distinguish between legitimate crypto activity and illicit financial flows. According to the company, proportionate regulation can strengthen investor confidence while allowing innovation to continue within a supervised environment.

Focus on Cross-Border Crypto Transactions

The proposed South Africa crypto regulations aim to clarify how crypto assets fit into the country’s capital flow management regime. They also seek to improve authorities’ ability to monitor cross-border transactions involving digital assets.

Government officials have stressed that the draft regulations do not criminalise the ownership of crypto assets. They also do not require investors to surrender legally acquired digital assets. Instead, the framework focuses on strengthening oversight of cross-border activity and preventing illicit financial flows.

Industry Seeks Regulatory Clarity

For exchanges such as Luno, regulatory certainty remains a key priority.Clear rules can help digital asset businesses build compliant products, attract institutional clients, and work more closely with banks and payment providers. They also provide greater confidence for consumers using regulated crypto platforms.

Luno has consistently advocated for responsible regulation across the markets where it operates. The company says regulatory clarity is essential for the long-term growth of the digital asset industry and broader financial innovation.

South Africa Continues to Refine Its Crypto Framework

South Africa has introduced several measures to strengthen oversight of digital assets in recent years. These include licensing requirements for crypto asset service providers and proposals covering taxation, anti-money laundering obligations, and capital flow management.

The latest consultation shows that regulators are moving beyond recognising crypto assets toward defining how they should operate within South Africa’s broader financial system. Once the consultation process concludes, National Treasury and the SARB will review industry submissions before publishing the final regulations.

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Editorial Takeaway

South Africa crypto regulations are entering a more mature phase as regulators seek stronger oversight without stifling innovation. Luno’s response shows that industry participants want practical rules that protect consumers while supporting responsible growth. The final framework could influence how other African markets approach digital asset regulation.