Luno CEO: Draft rules could bar SA from $33T stablecoin market

James Lanigan, chief executive of crypto exchange Luno, warned the draft Capital Flow Management Regulations could prevent South African firms from using stablecoins and cut the country off from a roughly $33 trillion global stablecoin payments market. The National Treasury and the South African Reserve Bank extended the public comment period on the draft rules to June 30, 2026.

Published in late April, the proposed regulations seek to update South Africa’s decades-old exchange control regime. Industry backlash followed over enforcement proposals that raised the prospect of prison terms, heavy fines, asset seizure or forced liquidation of crypto holdings into rands. Treasury and the Reserve Bank issued a joint statement saying they do not intend to criminalize asset ownership or apply the rules retrospectively.

Lanigan told reporters the draft wording could be interpreted to ban cross-border stablecoin transactions or repatriation of funds via stablecoins, which would limit access to widely used payment infrastructure. He pointed to data showing stablecoins settled about $33 trillion in payments and blockchain transfers in 2025, a figure larger than the annual settlement volumes of major card networks.

Stablecoins are used by companies to move value quickly across borders and to manage liquidity where US dollar cash is scarce. Local stablecoins can support domestic payments and treasury operations, while dollar-denominated stablecoins can speed cross-border settlement. Luno executives say clients frequently ask for stablecoin options to manage currency shortages and accelerate receipts and payouts.

Regulators have said they will publish a draft instructional manual that defines what counts as a ‘cross-border crypto transaction’ and clarifies reporting expectations. Industry groups say they cannot give detailed feedback until that manual appears and note there are no standard banking reporting codes for stablecoin transfers, which increases compliance uncertainty.

Lanigan pointed to a broader industry shift as traditional financial firms and asset managers move parts of their operations to on-chain infrastructure and migrate services to blockchain networks. He called for revisions to the draft regulations to allow companies to use stablecoins within clear rules. “Stablecoins are already settling more value annually than Visa and Mastercard combined,” Lanigan added.

The Treasury and the Reserve Bank said they want public input and will publish further guidance to help stakeholders interpret the proposals before the comment period closes on June 30, 2026.