Subscribe
Back to News / Policy

South African Bitcoin Exchanges Respond to New Capital Flow Regulations

SA
BY SATOSHEE
Verified Contributor
| 4M AGO | 3 MIN READ MIN READ | 1 VIEWS
luno-headquarters
POLICY REGULATION

South Africa’s two largest licensed Bitcoin exchanges, Luno and VALR, have issued detailed responses to the National Treasury’s Draft Capital Flow Management Regulations for 2026. These regulations formally incorporate Bitcoin into the country’s exchange control framework for the first time.

The Treasury published the draft on 17 April 2026. Consequently, the public has until 18 May 2026 to submit comments on the proposal. You can view the .

Luno Highlights Risks to the Digital Sector

Luno addressed the shift away from the 1961 regulations. However, the exchange raised serious concerns about the practical impact on Bitcoin users. Specifically, their official statement on X highlighted that the new rules might treat domestic transactions on licensed platforms as “capital exports.”

Furthermore, Luno argued that the draft fails to classify Bitcoin held on licensed local platforms as “onshore” assets. This oversight could create unnecessary friction for everyday users and professional traders alike. Consequently, Luno is preparing a formal written submission to the National Treasury to address these issues.

VALR Warns of Restrictive Enforcement Powers

VALR, South Africa’s largest Bitcoin exchange, published a strongly worded response titled “Your Action Required.”:

  • Mandatory Declarations: Users must declare Bitcoin holdings within 30 days.

  • Transaction Purpose: Users must state a “purpose” for every transaction. If that purpose changes, the law could force a sale of the asset.

  • Broad Enforcement: Officials could demand access to private keys and passwords.

  • Heavy Penalties: Violations may lead to R1 million fines or five years in prison.

VALR CEO Farzam Ehsani has also publicly voiced concerns about the draft’s aggressive approach toward private digital property.

How to Participate in the Public Comment Process

Both Luno and VALR are now urging Bitcoin users and investors to review the draft. This regulatory proposal represents a significant expansion of state oversight in Africa. Because South Africa is a major regional hub, these rules will set a precedent for the entire continent.

Official Submission Details:

AFRICABITCOIN