Brief
Luno says draft crypto rules conflict with South Africa’s IMF commitments
The exchange warns that the draft treats stablecoin payments differently from bank transfers, raising compliance concerns.
By Felo News Desk · Published
Luno’s Africa managing director Marius Reitz told TechCentral that South Africa’s draft cross‑border crypto rules could breach the country’s International Monetary Fund commitments.
What happened
The draft capital‑flow management regulations would classify all stablecoin payments as capital flows rather than current‑account transactions, unlike equivalent dollar payments made through banks. Luno submitted its comments before the public‑comment deadline of 30 September.
What the report adds
According to the article, Luno argues the draft treats crypto assets by form instead of function, grouping bitcoin, stablecoins and utility tokens under a single regime despite the Reserve Bank’s own research distinguishing them. The exchange also joins the Catastrophe coalition – which includes VALR, AltCoinTrader and EasyEquities – in opposing the ban on cross‑border crypto movement and the self‑custody rule that would prevent assets from returning to local platforms.
What was said
Reitz, who criticised the draft in April, said bitcoin should be treated as an issuer‑less commodity, stablecoins as payment instruments with a dedicated regulatory stream, and utility tokens as infrastructure tools. Reserve Bank financial‑stability head Nicola Brink warned in November that borderless crypto payments could be used to circumvent exchange controls.
How it came about
Luno’s submission follows earlier concerns raised by the coalition and reflects broader industry criticism that the draft’s “no threshold, no exception” approach would push assets offshore and thin local market liquidity. The Reserve Bank told TechCentral on 9 September that the manual remains subject to refinement, especially regarding stablecoins.
Key facts
- Luno says the draft treats stablecoin payments as capital flows, unlike bank dollar payments. (techcentral.co.za)
- The draft groups bitcoin, stablecoins and utility tokens under a single regulatory regime. (techcentral.co.za)
- Luno submitted its comments before the public‑comment deadline of 30 September. (techcentral.co.za)
- Reserve Bank’s Nicola Brink warned that crypto payments could be used to circumvent exchange controls. (techcentral.co.za)
Sources
- [1] techcentral.co.za — originally reported as “Luno says crypto draft may clash with SA's IMF commitments”
