Luno’s stance: Proposed Capital Flow Management Regulations in South Africa

At Luno, we believe that keeping you informed about regulatory shifts is central to our mission of upgrading the world to a better financial system. Recently, National Treasury released the draft ‘Capital Flow Management Regulations’ – new regulations which propose significant changes to how crypto assets are treated by South Africa’s exchange control framework. 

We are reviewing these proposals, and will provide comments to National Treasury, to advocate for a framework that is practical and fair for all South African crypto users. We encourage others to do the same. 

Understanding the draft regulations 

The draft regulations aim to modernise South Africa’s decades-old exchange control system. While Luno supports overhauling the ageing exchange control framework, the current draft poses hurdles that will introduce friction for everyday crypto users and slow South Africa’s momentum as a global fintech leader.  

The draft suggests several new requirements for crypto holders, such as:

• Limits for all transactions (regardless of export):  Any transaction to buy, sell, borrow or lend crypto, exceeding a set threshold (yet to be determined by the Finance Minister) will need the permission of National Treasury, even transactions within South Africa.
  
  
• Declarations: A 30-day window, once the regulations come into force, to report all crypto holdings or entitlements to National Treasury.
  
  
• Defined purpose: A requirement to state the intent of a transaction to National Treasury, when getting approval for that transaction, with a potential obligation to sell the crypto assets if that purpose changes.
  
  
• Expanded enforcement: Travellers may be required to declare crypto assets at borders, similar to existing rules for foreign currency and gold, with officials having the authority to request verification of holdings during an investigation.
  

These proposals impose requirements that would normally only kick in when there is an export of capital out of South Africa, onto every crypto transaction, even those taking place within South Africa. 

How Luno is taking action

At Luno, we believe crypto held on a licensed local crypto asset service provider should be classified as an onshore asset. This would allow you to grow your crypto portfolio without it being unnecessarily restricted by offshore investment thresholds (Single Discreationary Allowance / Foreign Investment Allowance). 

Luno is currently preparing a formal submission to National Treasury. We are also collaborating closely with crypto industry stakeholders, to ensure that the collective voice of the industry is heard. Luno’s goal is simple: to advocate for a balanced framework that prevents illicit activity while allowing the digital economy to flourish. 

Have your say 

These regulations are currently in a public participation phase, which means your voice matters! Treasury has invited the public to comment on these drafts with a submission deadline of 18 May, and we encourage you to share your perspective on how these changes might impact you. The draft regulations are available on the National Treasury website. 

If you would like to submit your personal commentary, you can do so by emailing the National Treasury directly. 

How to submit your comments

• Email: [email protected]
• Deadline: 18 May 2026
• Subject Line: Comments on Draft Capital Flow Management Regulations

*This information should not be construed as a solicitation to trade. All opinions, news, research, analysis, prices or other information is provided as general market commentary for information purposes only and is not investment advice or recommendation. Luno always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.