Crypto exchange Luno has formally challenged South Africa’s proposed foreign-exchange law reforms, arguing that the National Treasury’s plan to bring digital assets under capital flow controls bypasses Parliament and affects the property and privacy rights of millions of South Africans. In its filing, Luno said the draft includes provisions allowing asset seizure without a court order, forced liquidation, and sanctions that could ultimately shut down businesses. The exchange said violators could face up to five years in prison, a $53,000 fine, or both. Luno proposed that the country’s final framework for crypto-related capital flows should be established through an act of Parliament rather than through the current route. It also called for crypto assets bought and held through licensed South African exchanges to be treated as domestic assets, and for digital assets to be classified according to their economic function. The company further urged regulators to remove forced-sale measures and warrantless asset seizure mechanisms, while allowing non-resident international trading firms to keep accessing the South African market under proper registration in order to preserve market liquidity.
Crypto exchange Luno has formally challenged South Africa’s proposed foreign-exchange law reforms, saying the National Treasury’s plan to place digital assets under capital flow regulation bypasses Parliament and touches the property and privacy rights of millions of South Africans.
In its filing, Luno said the draft contains provisions for asset seizure without a court order, forced liquidation, and sanctions that could lead to the termination of business operations. Under the proposal described by the company, violators could face up to five years in prison, a $53,000 fine, or both.
Luno’s proposed changes
Luno said South Africa’s final framework for crypto-related capital flows should be created through parliamentary legislation. It also proposed that crypto assets purchased and held on licensed South African exchanges should be classified as domestic assets, with different categories of digital assets separated by their economic function.
The exchange also called for the removal of forced-sale requirements and warrantless asset seizure mechanisms. It said non-resident international trading firms should still be allowed to access the South African market under appropriate registration so that market liquidity can be maintained.
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