Woofun AI reports that cryptocurrency exchange Luno has formally contested South Africa’s proposed foreign exchange law reforms. The submission argues that the National Treasury’s plan to regulate digital assets under capital flow rules bypasses parliamentary procedure and infringes on property and privacy rights. Luno highlights provisions allowing asset seizure without court orders, forced liquidation, and sanctions potentially resulting in business termination, with violators facing up to five years in prison or fines reaching $53,000.

Luno recommends establishing the final crypto capital flow framework through an act of parliament. It proposes classifying crypto assets held on licensed domestic exchanges as domestic assets and distinguishing digital asset categories by economic function.

Additionally, Luno urges the removal of forced sale mechanisms and warrantless seizures, while advocating for continued market access for registered non-resident trading companies to preserve liquidity.