Brief
Luno warns South Africa's crypto draft could push activity offshore
The crypto exchange argues the draft manual would raise costs, limit corporate use of stablecoins and push activity into unregulated channels.
By Felo News Desk · Published
Luno submitted a formal comment to the South African Reserve Bank (Sarb) warning that the draft Crypto Asset Manual could increase costs for consumers, restrict local businesses and drive crypto activity offshore.
What happened
The draft manual, released in early October, treats buying and holding crypto on a locally licensed platform as a domestic activity but bans South African companies from moving crypto across borders in any direction. Luno notes that the ban applies to stablecoins, which are used for instant inter‑company payments, and that companies have no threshold or exemption to apply for cross‑border transfers.
What the reports add
According to the Bizcommunity article, Luno says the draft gets some elements right, such as recognising domestic crypto activity, but the blanket ban on corporate cross‑border crypto contradicts the Treasury’s “positive bias” stance expressed in the recent Budget Speech. The exchange also points out that market makers – firms that keep local crypto prices aligned with global markets – are almost exclusively companies, and without them trading could become thinner and more expensive for South Africans.
What was said
"We share the overarching goals that the Treasury and the Sarb have. We all want a modern system with a sharp focus on reporting higher‑risk flows," Luno’s Africa general manager Marius Reitz told Reuters, as cited by Bizcommunity. "Our submission aims at helping the final rules deliver on that promise. Get this right, and South Africa keeps investment and jobs. Get it wrong, and South Africa's economy will simply not be ready for the future, and in effect render itself irrelevant in a modern and fast‑evolving global financial system."
How it came about
Luno’s concerns follow its earlier submission on 30 September, which highlighted conflicts between the draft and South Africa’s IMF commitments, particularly the treatment of stablecoin payments as capital flows. The exchange’s previous comments were linked to a warning from Sarb’s Nicola Brink that crypto payments could be used to circumvent exchange controls. This brief builds on Felo’s coverage of Luno’s earlier objections published on 5 October.
Key facts
- Luno submitted formal comments to Sarb warning the draft Crypto Asset Manual could push activity offshore (bizcommunity.com)
- The draft bans South African companies from moving crypto across borders, including stablecoins (bizcommunity.com)
- Luno’s Marius Reitz said the rules could make South Africa’s economy irrelevant if mis‑applied (bizcommunity.com)
Timeline
- 2026-09-30 — Luno submitted comments before public‑comment deadline
- 2026-10-05 — Felo reported Luno’s claim that draft rules conflict with IMF commitments
- 2026-10-07 — Bizcommunity published Luno’s warning about offshore risk
Sources
- [1] bizcommunity.com — originally reported as “Sarb crypto rules risk driving investment and innovation offshore, says Luno”
