Luno formally challenges South Africa's proposed capital flow regulations
2026-07-16 06:34
Odaily Planet Daily News: Cryptocurrency exchange Luno has formally challenged South Africa's proposed foreign exchange legal reforms, arguing that the National Treasury's plan to bring digital assets under capital flow regulations bypasses parliament and involves the property and privacy rights of millions of South Africans.
In its submission, Luno pointed out that the draft includes provisions for asset seizure without court orders, forced liquidation, and sanctions that could lead to business termination. Violators could face up to 5 years in prison, fines of up to $53,000, or both.
Luno recommends that the final crypto capital flow framework be established through an Act of Parliament, that crypto assets purchased and held on licensed South African exchanges be recognized as domestic assets, and that different digital asset categories be distinguished based on their economic function.
Luno also proposes removing the mechanisms for forced sales and warrantless asset seizure, and allowing non-resident international trading companies to continue accessing the South African market with appropriate registration, in order to maintain market liquidity.
In its submission, Luno pointed out that the draft includes provisions for asset seizure without court orders, forced liquidation, and sanctions that could lead to business termination. Violators could face up to 5 years in prison, fines of up to $53,000, or both.
Luno recommends that the final crypto capital flow framework be established through an Act of Parliament, that crypto assets purchased and held on licensed South African exchanges be recognized as domestic assets, and that different digital asset categories be distinguished based on their economic function.
Luno also proposes removing the mechanisms for forced sales and warrantless asset seizure, and allowing non-resident international trading companies to continue accessing the South African market with appropriate registration, in order to maintain market liquidity.
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