Introduction

Cryptocurrency exchange Luno has urged South African regulators to revise outdated restrictions that prevent digital assets from being included in collective investment schemes (CIS). The company argues that the current policy framework, first introduced in 2014, blocks ordinary investors from accessing the world’s best-performing asset of the past decade — Bitcoin.

Luno’s call comes amid a global wave of institutional adoption, where pension funds, corporations, and governments are increasingly embracing crypto as a legitimate asset class.

The Restriction: Board Notice 90

At the center of the debate is Board Notice 90, a regulatory policy issued in 2014. This framework explicitly prevents cryptocurrencies from being held within collective investment schemes — the legal structures underpinning some of South Africa’s most popular financial products, including unit trusts.

While retail investors can purchase crypto directly, institutional investors and retirement savers who rely on structured investment vehicles are excluded. According to Marius Reitz, Luno’s General Manager for Africa & Europe, this exclusion deprives South Africans of access to significant wealth-building opportunities.

Why Luno is Calling for Change

Bitcoin has been one of the best-performing assets of the past decade, appreciating more than 40,000% between 2013 and 2025. This year alone, it has risen nearly 80%, driven by global adoption and institutional inflows.

Luno argues that:

• Crypto provides diversification – Bitcoin and Ethereum show low correlation with traditional assets, offering improved risk-adjusted returns.
• South African investors are falling behind – Global pension funds, corporations, and governments are gaining exposure to digital assets, while South Africans remain restricted.
• The regulatory gap hurts ordinary savers – Without CIS inclusion, South Africans with limited financial expertise cannot access crypto through secure institutional products such as pension funds or unit trusts.

Reitz emphasized that a measured allocation to crypto could give retail investors access to digital finance opportunities while managing risk effectively.

Government’s Position

South Africa’s Finance Minister Enoch Godongwana has defended the prohibition, arguing that cryptocurrencies remain risky and unsuitable for institutional investment at present.

This stance contrasts with international trends, where crypto assets are increasingly viewed as safe-haven assets amid geopolitical uncertainty and volatile financial markets.

For example:

• In the U.S., speculation has grown around the possibility of Bitcoin being considered a reserve currency, following reports that Trump Media purchased $2 billion worth of Bitcoin.
• Several major investment funds globally now allocate a percentage of their holdings to cryptocurrencies, citing long-term growth potential.

Luno’s Proposed Solutions

Luno has urged the South African Reserve Bank (SARB) to:

1. Expand its forthcoming cryptocurrency framework – ensuring clearer rules for trading and investment.
2. Classify digital assets as “onshore” when held on locally licensed platforms — reducing regulatory uncertainty and encouraging institutional participation.

According to Luno, these changes would align South Africa with international best practices, reduce risk, and unlock billions of rand in untapped investment potential.

Frequently Asked Questions (FAQs)

1. What is Board Notice 90?

Board Notice 90 is a 2014 South African regulatory framework that prevents cryptocurrencies from being included in collective investment schemes (CIS). These schemes are the backbone of investment products such as unit trusts and retirement funds.

2. Why does South Africa restrict institutional crypto investment?

Regulators, including the Finance Ministry, argue that crypto assets are still risky and volatile. The prohibition aims to protect investors from potential losses, though critics argue it denies them access to high-growth opportunities.

3. Can South African retail investors still buy crypto?

Yes. Retail investors can purchase Bitcoin, Ethereum, and other digital assets directly through licensed platforms like Luno. However, they cannot currently access crypto through institutional products such as pension funds or collective investment schemes.

4. How are other countries approaching crypto regulation?

Globally, institutional adoption of crypto is increasing. Pension funds, corporations, and even governments are adding Bitcoin to their reserves. In contrast, South Africa remains more restrictive, creating a regulatory gap.

5. What would change if crypto were allowed in CIS?

Allowing crypto within CIS would enable pension funds, retirement accounts, and other structured investments to hold digital assets. This would broaden access for ordinary South Africans, providing exposure to Bitcoin and other cryptos in a regulated, diversified manner.

6. What is Luno’s main recommendation to regulators?

Luno has asked the South African Reserve Bank to provide clearer rules on crypto trading, expand its upcoming regulatory framework, and classify digital assets as “onshore” when held on locally licensed platforms.

Conclusion

South Africa’s restrictive crypto regulations are increasingly at odds with global trends. As institutional adoption of Bitcoin and other cryptocurrencies accelerates worldwide, Luno’s call for reform highlights the growing urgency for local regulators to adapt.

Allowing crypto within collective investment schemes could expand access to wealth-building opportunities for millions of South Africans while fostering a more competitive financial sector.

Whether regulators respond to these calls will determine whether South Africa remains on the sidelines of global crypto growth or positions itself as a forward-thinking financial hub.

For more details on crypto regulations, visit the South African Reserve Bank.