Crypto exchange Luno has formally pushed back against South Africa's proposed capital flow regulations, arguing the government's plan to bring digital assets under foreign exchange rules should go through Parliament, not be imposed by proclamation. The move sets up a potential legal and procedural clash over how the country treats cryptocurrencies.
What the proposed rules entail
The National Treasury's draft regulations would classify digital assets as financial instruments subject to exchange control laws. That means strict enforcement and steep penalties for non-compliance. Luno, one of the largest crypto platforms operating in South Africa, says the approach is flawed from the start.
Luno's legal argument
In its formal challenge, Luno contends that the Treasury is trying to bypass the legislative process. The company argues that any new framework for digital assets should be debated and passed by Parliament, not enacted through executive proclamation. Luno's submission warns that the current path could create legal uncertainty and stifle innovation in the country's growing crypto sector.
What happens next
The Treasury is now reviewing public comments, including Luno's challenge. No timeline has been set for a final decision. But the exchange's pushback signals that industry players are ready to fight for a clearer, more predictable regulatory environment. Whether the government will bend or dig in remains an open question.
