Latest news with #Luno
IOL News
12 hours ago
- Business
- IOL News
Crypto traders, pay attention: legal changes are coming
South Africa's exchange control rules are laws that decide how money can move in and out of the country. They affect how much forex you can buy, how you invest overseas, and how businesses move funds across borders, says Davron Chanderdeo. A RECENT High Court ruling just confirmed something many of us in the crypto world have known for a while. South Africa's laws around money, especially when it comes to crypto, are completely outdated. Judge Mandlenkosi Motha ruled that the country's exchange control regulations, which were written way back in 1961, don't apply to cryptocurrencies like Bitcoin. That's a big deal, because up until now, traders and investors have been operating in a confusing space, unsure what the rules really are. So, what does this mean if you're trading crypto on Luno, VALR, or Binance? Whether you're an investor, casual buyer or someone who trades daily, here's how this decision affects you and what you should do next. Why this ruling matters South Africa's exchange control rules are laws that decide how money can move in and out of the country. They affect how much forex you can buy, how you invest overseas, and how businesses move funds across borders. Until now, there's been no clear rule about where crypto fits. Is it like rand? Is it a foreign investment? Or is it something totally new? Someone can transfer Bitcoin from Cape Town to a family member in Hong Kong in a matter of minutes and that transaction, under current law, isn't clearly defined as foreign or local. The court said: crypto is not covered by the old rules. It's time for new laws made just for digital currencies. So what changes for traders or the everyday South African? Let's break it down with a few real-life examples. You're trading from your couch: You buy Bitcoin on Luno, then move it to Binance for better trading options. Under the old rules, it was unclear whether that was considered 'sending money offshore'. Now? The court says crypto isn't covered, so you're technically not breaking exchange control laws. But this may change once new rules come in. You work for a financial firm or are an avid investor: Let's say your firm wants to launch a crypto ETF or offer Bitcoin as one of the assets in a pension fund. Right now, that's risky, because crypto isn't clearly identified as an onshore or offshore asset. Furthermore, Regulation 28 of the Pension Funds Act allows limited exposure to crypto assets (up to 10%), but asset managers remain cautious due to FSCA guidance and ongoing market volatility. This ruling could pave the way for investment houses to get involved which means more opportunities and better products for everyday investors. The bigger picture: why regulation is good for you Let's face it, most South Africans don't like the idea of more rules. But in the crypto world, the right regulation doesn't mean more red tape, it means more protection, less risk, and real growth. According to the Financial Sector Conduct Authority (FSCA), crypto-related scams are on the rise in South Africa, particularly across social media platforms like WhatsApp, Facebook, and Instagram. Fraudsters often impersonate legitimate traders or companies, promising unrealistic returns and then vanishing once funds are transferred via Bitcoin or other crypto. These scams exploit crypto's semi-anonymous nature, making it harder to trace transactions and recover funds. A 2023 FSCA report warned that South Africans lost over R500 million to crypto scams in just one year, with most scams originating via social media or messaging platforms. So why would these scammers ever stop? While there's currently no formal government-mandated transaction declaration process between crypto wallets, increased regulation may soon require verified identification through Know-Your-Customer (KYC) processes at local and international exchanges. This would make it harder for criminals to use crypto anonymously and easier for authorities to trace illicit activity. Implementing regulation will: - Help prevent scams by setting minimum standards for exchanges and wallet providers. - Make tax reporting easier, so you know what you owe and can plan properly. - Encourage large institutional investors (like pension funds and asset managers) to enter the market, bringing stability and liquidity. - Create a legal path for innovation, like launching crypto linked debit cards, savings products, or smart investment platforms. My final thoughts are that this ruling is a win for the crypto community, but it's also a wake-up call: the wild west era of trading is ending. That's not a bad thing, it means South Africa is taking crypto seriously. And when the law takes something seriously, so does the market. Traders who stay informed, track their gains, and keep things clean will benefit the most. Crypto is here to stay. With the right legal framework, it can shift from the margins to the mainstream, unlocking innovation, securing investor trust, and contributing meaningfully to South Africa's financial ecosystem.
The Star
12-06-2025
- Business
- The Star
SC approves two more digital assets by Luno
Securities Commission Malaysia building at Kuala Lumpur. PETALING JAYA: The Securities Commission Malaysia (SC) has approved two more digital assets by Luno in its second batch of approvals this year. In a statement released, Luno, a global cryptocurrency investment app said its newest listed assets, Hedera (HBAR) and The Graph (GRT) will bring its total coin list to 22, the widest in Malaysia. Luno Malaysia country manager, Scarlett Chai said the additions will offer investors a chance to explore a broader part of the crypto ecosystem and diversify their portfolios safely and securely. She said among the key features of HBAR is that it is a high-performance, energy-efficient public network. 'It leverages hashgraph consensus for fast, secure, and low-cost transactions, with predictable fees and enterprise-grade governance, enabling sustainable and scalable decentralised applications (dApps),' she said. GRT on the other hand is a decentralised indexing protocol that enables efficient querying of blockchain data, making it easier for developers to build performant and reliable dApps across multiple blockchains. Meanwhile, Chai said the listing of both came about after a rigorous screening process which evaluates potential assets against strict technical, regulatory, and legal criteria to ensure their feasibility and suitability for introduction in Malaysia, as well as other markets across APAC, Europe, and Africa. 'Shortlisted coins are then proposed to the SC for a country-wide approval, allowing the Malaysian public to invest or trade the respective digital assets,' she said. So far, Luno has submitted more than 25 digital assets to the SC with 22 approved and available on the platform. Aside from HBAR and GRT, the platform launched Algorand, and NEAR Protocol, while expanding its staking service to include Polkadot, NEAR Protocol, and Cosmos.
Daily Maverick
02-06-2025
- Business
- Daily Maverick
Bitcoin reaches fever pitch — but always know what you're buying, say experts
TikTok traders, crypto evangelists and Bitcoin havens paint a picture of quick wins and easy exits. On Daily Maverick's Decrypting Crypto webinar, experts reminded investors that volatility, risk and regulation are all part of the crypto package. At more than R1-million a coin, Bitcoin's latest bull run is once again flooding feeds with promises of overnight wealth. Amid the media noise, experts are stepping in, urging caution: don't buy into something you don't understand. That was the message at Daily Maverick's Decrypting Crypto webinar, hosted by senior journalist Lindsey Schutters, in conversation with Christo de Wit, country manager of Luno, and Diketso Mashigo, head of the Financial Sector Conduct Authority's (FSCA's) licensing department. 'There's obviously a lot of clamour in the market,' Schutters said. 'Bitcoin is at an all-time high, it's a lot of money and everyone's trying to get in.' Don't invest in what you don't understand 'It is very important that people really get to understand what it is that they're buying into, what they're investing in and understand what the risks are,' Mashigo said. He stressed that the regulator expected authorised providers to actively educate their clients, especially when it came to a volatile asset such as crypto. While that may sound obvious, the crypto space is designed to move fast, often faster than many retail investors can realistically follow. Goals before gains 'When it comes to any kind of investment, whether it's crypto or not, it's important to have understanding and a very clear idea what your financial goals are, both short term and long term,' De Wit said. Crypto is notorious for its wild swings. Bitcoin itself has gone from R300,000 to R1-million, with some stomach-churning dips in between. 'Crypto is a higher risk asset class, and there is a lot of volatility,' De Wit said. Having a fundamental understanding of this was crucial in informing oneself when investing in crypto. Fractional ownership, full exposure A common crypto myth is that one needs to own a full coin to get started; an idea De Wit was quick to dispel. 'I think it's important for new-time investors to understand that you don't have to purchase an entire Bitcoin. You can purchase a fraction of it,' he explained. 'Even though Luno or the centralised exchange custodies it and keeps it in safekeeping, you have immediate access to further trade it, to withdraw it, to convert it back to rands, to convert it to other currencies.' The trick is choosing a credible licensed provider. 'Very carefully select your centralised exchange,' De Wit said. 'You can verify that on the FSCA website as well, to make sure that you know this is a cryptocurrency exchange platform that is licensed.' If your slice of the coin gains value, so does your investment. 'Any growth or loss, depending on what the market does, is related to the percentage that you hold,' De Wit said. Users can convert crypto to rands, transfer between wallets and even send Bitcoin to friends, which are growing trends in parts of the country. 'The whole Garden Route is becoming a crypto haven,' Schutters said. 'A lot of [people] are using stablecoins because they're just easier to transact with.' What does it mean to 'own' crypto? Ownership in the crypto space doesn't always look like traditional finance, but it follows similar principles, Mashigo explained. 'If I purchase a financial product, my ownership in that asset is represented somehow,' he said. 'And in this space, you can look at tokens. That, proportionately, is what I'm holding in that particular asset.' But how do you know that ownership is real and respected? De Wit pointed out a crucial consumer safeguard: proof of reserve. An important aspect to look out for is whether an exchange showcases proof of reserve, which is an audited report that validates that all consumer crypto currencies are exactly where the platforms say they are, he said. It's one of the most transparent ways users can confirm their holdings exist and they're not being lent out or siphoned off without consent. The three golden rules Mashingo broke down FSCA's consumer guidance into three pillars for anyone considering a crypto investment: Understand the product. Know exactly what you're buying, how it works and if it addresses your needs. Know the risks. Volatility, market swings and speculation are part of crypto's nature. Be ready to stomach the sudden drops. Verify the platform. 'Understand the party or the platform or the venue or the provider that you're dealing with, whether they're licensed or not,' said Mashigo. 'That's simple. You come through us. You check on our website, pop us an email, and we can confirm.' Growing regulation Mashigo made it clear that the FSCA was here to make sure that people knew what they were getting themselves into. 'We make sure that … certain basic things are in place,' said Mashigo and specified that businesses had to be contactable, transparent and authorised to do what they claimed. With crypto asset providers (CASPs) now being brought under formal licensing and regulatory oversight in South Africa, the hope is that consumer protection will continue to improve. DM
The Citizen
22-05-2025
- Business
- The Citizen
Bitcoin hits record high, surpasses R2 million
For South Africans, this development underscores the growing importance of cryptocurrency as a potential portfolio diversification tool. Bitcoin (BTC) hit a new all-time high of $111,534 (R2,010,914) on Thursday. Christo de Wit, South Africa country manager at Luno said this demonstrated an increasing independence from traditional financial markets. On 11 March 2025, Bitcoin was trading around $109,000 (R1,743,420) on Luno. 'The timing of this milestone is particularly symbolic, coinciding with the 15th anniversary of Bitcoin Pizza Day.' ALSO READ: Bitcoin eyes R2 million (again) Bitcoin hit all high De Wit added that on 22 May 2010, developer Laszlo Hanyecz famously paid 10,000 Bitcoin for two pizzas, a transaction worth more than $1.1 billion at today's prices, highlighting Bitcoin's extraordinary appreciation more than the past decade and a half. 'The new all-time high comes as global cryptocurrency market capitalisation reached approximately $3.48 trillion, reflecting a 2.32% increase more than the past 24 hours, while traditional equity markets experienced downward pressure with the S&P 500 declining 1.61%.' New price peak Bitcoin Exchange-Traded Funds (ETFs) He added that the Bitcoin rally has triggered substantial institutional interest, with Bitcoin Exchange-Traded Funds (ETFs) recording more than $607 million in inflows following the new price peak. This institutional adoption signals growing confidence in Bitcoin as a legitimate asset class among professional investors. 'This decoupling from traditional equities is particularly noteworthy.' ALSO READ: Bitcoin crashes. Is it still worth it? Is Donald Trump to blame? What does it mean for South African investors? De Wit said that for South African investors, this development underscores the growing importance of cryptocurrency as a potential portfolio diversification tool, particularly as global economic conditions continue to evolve. 'The broader cryptocurrency market is benefiting from Bitcoin's momentum, with altcoins also posting gains. 'This latest peak occurs against a backdrop of ongoing concerns about potential US debt downgrades and legislative uncertainty around President Donald Trump's proposed tax bill. These factors have weighed on traditional equity markets. 'The divergence between crypto and stock performance suggests that digital assets are increasingly viewed as alternative stores of value during periods of traditional market uncertainty.' NOW READ: Luno impersonation scammers suck R700k from victim
Daily Maverick
12-05-2025
- Business
- Daily Maverick
Local crypto market evolves beyond Bitcoin, embraces altcoins and stablecoins
That ticker you see on the Business Maverick section homepage? It's the sign of a shifting tide in the local crypto market that may upset the traditional finance ships. When Bitcoin decoupled from its 'volatile investment' paradigm during Donald Trump's tariff war, the price rally put off many would-be crypto investors. But it represents just one asset in a vast universe of digital currencies. According to Christo de Wit, cryptocurrency exchange Luno's country manager, Bitcoin functions primarily as 'digital gold' and a 'store of value', while altcoins occupy entirely different asset classes. 'There are around 20,000 other cryptocurrencies besides Bitcoin,' De Wit explains to Daily Maverick in an interview. 'Each has its own underlying foundation and blockchain technology.' Altcoins span many categories, including artificial intelligence, gaming, layer-one protocols and layer-two scaling solutions. For potential investors, understanding an Altcoin's utility and underlying technology is crucial before committing funds. 'You need to understand what the asset or coin is used for and how its value has grown relative to fiat currencies or even Bitcoin,' says De Wit. 'The market can be very overwhelming, given its breadth and complexity.' Luno sails the Altcoin seas Luno – once the most conservative option to turn rands into Bitcoin – is turning its sails to the wind and significantly expanding its crypto offerings. Having started with just a handful of cryptocurrencies, the exchange now lists more than 31 different digital assets and continues to grow its selection. 'We need to grow with the industry,' says De Wit. 'As the crypto market matures, particularly with regulation being adopted globally and increased scrutiny, we've been able to expand our product at a much faster pace because we've laid that solid foundation.' This expansion goes beyond simply adding new cryptocurrencies. Luno has launched additional products, including staking wallets, allowing users to earn rewards for holding certain cryptocurrencies. New coins, new rules One does not simply list a new currency. They undergo scrutiny through Luno's digital asset selection committee, which evaluates factors such as liquidity, security protocols and past security incidents. This is Luno's typically cautious approach to keep customer investments safe while expanding responsibly. 'We're pro-compliance and take a sensible approach to drive adoption through trust, safety and security,' says De Wit. 'Our mission is to upgrade the world to a better financial system by giving exposure to the crypto industry and blockchain technology to our user base, expanding their knowledge.' Perhaps no cryptocurrency better exemplifies the unpredictable nature of the Altcoin market than Dogecoin. What began as a novelty token based on a meme has transformed into one of the cryptocurrency market's most recognised assets – with some credit to Elon Musk riding the meme 'to the moon'. 'Dogecoin started as a complete replica or fork of Bitcoin's code,' De Wit explains. 'Despite questions about its fundamental utility beyond uses like rewards and online trading, it has grown into such a big asset.' Now ranking in the top 10 cryptocurrencies by market capitalisation, Dogecoin boasts 'a huge following'. 'This represents an evolution from Memecoin to fully fledged Altcoin,' says De Wit. 'Dogecoin is not going anywhere.' What this means for you Think crypto is just volatile Bitcoin? Think again. The market has exploded with thousands of 'altcoins' designed for specific uses (like gaming or AI) and 'stablecoins' pegged to currencies such as the US dollar. While Bitcoin is seen as 'digital gold', altcoins offer different opportunities. But beware – understand what a coin does and its underlying tech before investing, as the market is complex and risky. Stablecoins are shaking up cross-border payments, especially in Africa. They offer a way to potentially send or receive money internationally faster and with lower fees than traditional banks, reducing currency conversion losses. The bigger picture: Crypto isn't just speculation any more. It's starting to offer practical solutions, particularly for payments, challenging traditional finance systems. Stablecoins to tame the remittance tide While volatile cryptocurrencies capture headlines, stablecoins – digital currencies pegged to stable assets such as the US dollar – are quietly revolutionising cross-border payments across Africa. Luke Kyohere, chief product and innovation officer at Onafriq, points to USDC, a regulated and fully reserved stablecoin pegged to the dollar, as a prime example. 'Traditional money transfers are often characterised by high fees, slow settlement times and multiple currency conversions that erode value,' Kyohere explains. 'Stablecoins leverage the speed of blockchain technology while eliminating the volatility concerns of traditional cryptocurrencies.' For businesses, Stablecoin integration reduces transaction settlement times from days to minutes by 'eliminating the need for multiple intermediaries, minimising FX slippage, and ensuring near-instant reconciliation'. This efficiency is particularly valuable in Africa, where liquidity constraints and currency volatility are common challenges. Stablecoins now account for an impressive 43% of crypto transactions in Africa. Their adoption is driven by the high volume of intra- and inter-Africa cash movement between numerous smaller countries, and the need to hedge against inflation and currency risk. While mobile money has 'transformed domestic flows significantly in Africa', stablecoins excel in cross-border transactions because they are 'already cross-border interoperable', unlike mobile money systems that are typically 'tied to borders and countries'. Disrupting fintech This rapid rise of stablecoins presents both challenges and opportunities for established financial technology companies, particularly those focused on cross-border remittances using traditional fiat methods. Cornelius Coetzee, Verto country director, a company specialising in B2B cross-border payments with fiat currencies, acknowledges facing 'heat from the crypto community' because cryptocurrency 'specifically solves a lot of' the problems Verto's clients face, such as illiquidity and navigating complex exchange control regulations. 'Crypto came into existence because of exactly the problems that our clientele face,' he admitted in an interview with Daily Maverick at Converge Africa. 'We're feeling a hit from the Stablecoin community.' Coetzee believes that in the long run, stablecoins 'will form part of our ecosystem', suggesting they see stablecoins not purely as a threat but as a potential future component of their service. However, Coetzee also believes that while startups and millennials are predominantly adopting stablecoins, 'larger corporates and more established businesses will still stick to fiat'. This indicates that while stablecoins offer a compelling alternative, especially for newer or digitally native businesses, traditional fintechs serving larger enterprises still see strong demand for fiat-based solutions. Traditional finance isn't leaving anytime soon. DM
