Luno Challenges South Africa's Proposed Foreign Exchange Law on Crypto Assets

Luno has formally challenged South Africa's proposed foreign exchange law that would subject digital assets to capital flow regulations, arguing the Finance Ministry bypassed parliament to regulate crypto holdings affecting millions of citizens' property and privacy rights. According to the exchange's filing, the draft includes provisions for asset seizure without court orders, forced liquidation, and potential business suspension, with violators facing up to five years imprisonment, $53,000 in fines, or both.

Luno recommended enacting a final framework through parliamentary legislation, classifying crypto assets held at licensed South African exchanges as domestic assets, and removing forced-sale and warrantless asset-seizure mechanisms while allowing registered international trading companies continued market access to maintain liquidity.