Luno Pushes Treasury To Recognise Bitcoin As An 'onshore Asset'

According to Digital Currency Group-owned cryptocurrency exchange Luno, the move will advance the status of bitcoin in South Africa's financial regulatory landscape and allow institutional investors to apportion a larger share of their funds to the asset class.

"Internationally, cryptocurrencies are now just another recognised asset class to invest in along with stocks, government bonds and fiat currencies," said Paul Harker, global head of legal and corporate strategy at Luno, in a statement this week.

"In the current constrained fiscal reality, our government has little room to manoeuvre. Pro-growth and forward-looking decisions are essential."

The Reserve Bank told TechCentral on Friday that several frameworks have been developed by the Intergovernmental Fintech Working Group as part of work being done to develop comprehensive cryptocurrency regulations for South Africa. "The classification of crypto assets as domestic or foreign for capital flow management purposes will form part of a framework to be decided on in due course," it said.

Luno has called for speedier interventions.