Luno Expands in Africa, Drives Stablecoin Adoption Amid Regulatory Clarity

Luno, a crypto exchange headquartered in South Africa, has been operating across over 40 global markets since its establishment in 2013. The exchange has weathered the boom-and-bust cycles that have characterized the crypto industry, focusing on regulatory alignment and user-friendly experiences. This approach has set Luno apart in an industry often plagued by volatility and regulatory challenges.

In Africa, where 57% of the population remains unbanked, Luno's mission extends beyond trading. The exchange aims to provide access to a modern financial system for those who have been locked out. Marius Reitz, the general manager for Africa and Europe at Luno, emphasized the exchange's bold vision to upgrade Africa and the world to a better financial system. Following its launch in Kenya in 2024, Luno is poised to expand its reach and impact.

While much of the Western world focuses on meme coins and ETF speculation, Africa's crypto narrative is rooted in pragmatism. In South Africa, stablecoins like Tether’s USDT have surpassed Bitcoin in trading volume. This surge is driven by the demand for inflation-resistant, dollar-pegged assets amid local currency devaluation. Luno, a major on-ramp for fiat-to-crypto conversions in the region, is adapting quickly to meet this demand. Over the last 12 months, Luno has seen significant demand for stablecoins, offering low-cost USDT transfers across Ethereum and Tron with competitive fees and bulk trade options for professionals via its Trade Desk.

Additionally, Luno's retail-oriented Luno Pay app integrates crypto into everyday life. South African users can now spend USDT and USDC at thousands of merchants, earning crypto-back rewards. This integration of stablecoins into daily transactions highlights Luno's commitment to making crypto accessible and useful for everyday consumers.

Unlike many exchanges that shun regulatory scrutiny, Luno embraces it. In South Africa, where crypto assets are now classified as financial products by the FSCA, Luno has secured its operating license and helped shape the regulatory framework. Reitz explained that crypto bans force the industry underground, while markets with regulatory clarity foster responsible innovation and consumer protection. However, challenges remain. The upcoming classification of crypto assets as foreign or domestic investments in South Africa could hinder institutional flows if misaligned with market realities. The FATF Travel Rule, set to take effect in May 2025, poses technical and operational hurdles due to fragmented provider ecosystems. Despite these challenges, Luno is prepared, having already implemented the Travel Rule in other jurisdictions.

Across the continent, crypto adoption is outpacing infrastructure. Nigeria, for example, ranks second globally for crypto adoption but faces regulatory fragmentation, limited banking infrastructure, and crypto-related scams. Luno addresses these challenges with educational content, strong KYC/AML procedures, and robust banking partnerships. Mobile money is dominant in countries like Kenya and Nigeria, and Luno's mobile-native design and stablecoin access offer a compelling value proposition for both retail users and remittance providers.

Beyond individual users, Luno is becoming a key partner for fintechs and payment firms. Its custody and liquidity services support cross-border on- and off-ramping for traditional and crypto-native partners. Reitz stated that Luno receives inquiries from large multinationals wanting to shift part of their payments to crypto. The exchange's infrastructure allows them to do so securely, compliantly, and efficiently. This is pivotal for Africa's $48 billion annual remittance market, where stablecoins offer faster, cheaper alternatives to legacy systems.

Looking ahead, Luno expects crypto to become as ubiquitous as banks, used to save, invest, and transact. Stablecoins will anchor trade settlements, while ETFs and bank-based crypto products will dominate mature markets like South Africa. Luno is already laying the groundwork with its Trade Desk, custody solutions, and upcoming stablecoin expansions, positioning itself as an exchange ready to grow from a user-friendly app to an institutional-grade platform. In a region often overlooked by global players, Luno's longevity and blend of compliance, innovation, and education position it among notable actors in Africa's crypto arena.