Key Takeaways
- • Luno, a licensed crypto platform, has warned the South African Reserve Bank (Sarb) in a formal submission that the draft Crypto Asset Manual could raise consumer costs, restrict local businesses and push activity into opaque, unregulated channels.
- • The draft manual bans all South African companies from moving crypto across the border in either direction, a provision Luno says works against the stated goals of a modern, safe and stable financial sector.
- • The draft correctly treats buying and holding crypto on a locally licensed platform as a domestic activity, with only offshore or off-platform transfers classed as cross-border.
- • Luno argues that targeted revisions could align the framework with global best practice, supporting investment and jobs while preserving oversight and consumer protection.
Summary
Luno, a South African crypto platform, has submitted formal comments to the South African Reserve Bank (Sarb) on the draft Crypto Asset Manual, warning that the proposed rules governing cross-border crypto flows could have unintended consequences for the economy. According to the article, published via Bizcommunity.com, the company contends that the draft could increase costs for consumers, restrict local businesses and drive activity into opaque, unregulated channels.
Marius Reitz, Luno's general manager for Africa, said the company shares the overarching goals of the Treasury and the Sarb, which he described as a modern system with a sharp focus on reporting higher-risk flows. He said the submission is intended to help the final rules deliver on that objective, adding that South Africa could retain investment and jobs if the rules are right, but risks being left unready for the future and irrelevant in a fast-evolving global financial system if they are not.
Luno acknowledges that the draft manual gets several important elements right. Most significantly, it treats buying and holding crypto on a locally licensed platform as a domestic activity, with only moves offshore or off-platform classed as cross-border. However, Luno has concerns about several provisions that, as currently drafted, would work against the Sarb and Treasury's own stated aims. The most prominent of these is the proposed ban on all South African companies moving crypto across the border in any direction. Luno's submission argues that targeted changes could instead produce a framework aligned with global best practice that supports innovation, investment and jobs while strengthening oversight and consumer protection.
Marius Reitz, Luno's general manager for Africa, said the company shares the overarching goals of the Treasury and the Sarb, which he described as a modern system with a sharp focus on reporting higher-risk flows. He said the submission is intended to help the final rules deliver on that objective, adding that South Africa could retain investment and jobs if the rules are right, but risks being left unready for the future and irrelevant in a fast-evolving global financial system if they are not.
Luno acknowledges that the draft manual gets several important elements right. Most significantly, it treats buying and holding crypto on a locally licensed platform as a domestic activity, with only moves offshore or off-platform classed as cross-border. However, Luno has concerns about several provisions that, as currently drafted, would work against the Sarb and Treasury's own stated aims. The most prominent of these is the proposed ban on all South African companies moving crypto across the border in any direction. Luno's submission argues that targeted changes could instead produce a framework aligned with global best practice that supports innovation, investment and jobs while strengthening oversight and consumer protection.
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