Luno, South Africa’s oldest cryptocurrency exchange, welcomes the acknowledgement of the South African Reserve Bank (SARB) that the rapid rise in cryptocurrency adoption across South Africa necessitates an updated regulatory framework.
The SARB’s acknowledgement is significant, and a step toward establishing pro-growth regulations that foster growth, protect consumers and unlock the benefits of the digital asset industry for all South Africans.
Luno has consistently demonstrated a willingness to work alongside South African regulators and authorities, including the SARB, National Treasury, and SARS, to help develop a clear, forward-looking regulatory framework for crypto assets, including stablecoins.
In the SARB’s 2025 Financial Stability Review (Second Edition), released on Tuesday November 25, the Reserve Bank highlighted that the rapid growth in crypto asset adoption requires a new regulatory approach, while managing potential risks.
Luno has long advocated for a regulatory environment that fosters growth in the digital asset industry, while giving investors the clarity and protection they deserve.
A key gap remains the lack of clarity on whether digital assets such as Bitcoin and Ethereum are considered onshore or offshore for purposes of exchange control regulation. Luno has urged the Reserve Bank to strengthen its framework by designating digital assets as “onshore” when held on locally licensed platforms.
This simple shift would remove the uncertainty that currently discourages institutional investors from allocating capital to products such as Bitcoin due to questions around whether these fall under foreign investment limits. Recognising these assets as onshore would open the door to greater institutional participation, deepen local capital markets, and support South Africa’s long-term economic and tax base.
Luno has also recommended that Collective Investment Schemes (CIS), which include hedge funds, ETFs, and unit trusts, be permitted to allocate a portion of their portfolios to cryptocurrencies under the guidance of professional fund managers as part of a diversified investment strategy. Bitcoin has been the best-performing asset of the past decade, but managed funds and their clients may continue to miss out on meaningful growth opportunities without regulatory clarity.
- Marius Reitz: General Manager Africa and Europe
