Luno CEO: South Africa Stablecoin Rules Risk $33 Trillion Market

Industry groups raised several concerns. Enforcement language was too vague, Lanigan said. Ownership rules left companies guessing about who would hold the assets. Compliance costs remained an open question, making it hard to budget for the new regime. Lanigan said these questions needed answers before businesses could commit resources.

Regulators extended the comment deadline after receiving feedback from Luno and other industry participants. The extra time allows for more detailed submissions. Lanigan said the outcome would depend on whether regulators address the specific concerns.

If the regulations are adopted with the current language, businesses will likely shift stablecoin operations to more favorable jurisdictions, Lanigan said. A revised framework with clearer ownership rules and compliance guidance could keep South Africa competitive. Other countries in the region are developing clearer stablecoin frameworks, he added.

Luno, which operates across Africa and Europe, has seen demand for stablecoin payment services grow, Lanigan said. The comment period runs through June 30, 2026. Lanigan said Luno would continue to engage with regulators.