In recent years, the South African cryptocurrency market has become both locally and globally competitive, with African crypto companies holding their own against international players, whether in centralised exchanges, token projects, or hardware wallets. That’s according to Tarris Arnold, Business Development Manager at Luno. “Luno paved the way, showing the demand and viability of crypto investments. Now, established financial institutions are starting to integrate crypto offerings into their platforms,” Arnold explains. He believes this trend will lead to increased adoption and innovation in the sector.
Additionally, financial advisers are increasingly engaging with cryptocurrency, recognising that their clients hold digital assets. “We recently launched a tool that allows financial advisers to access customer data in a secure way, ensuring crypto is considered as part of holistic financial planning,” Arnold explains. “Many advisers are showing strong interest in this.”
What’s happening in the market?
The cryptocurrency market has experienced significant volatility in recent months, leaving investors questioning the direction of the industry. Despite hopes of entering a new golden age, market sentiment has been tempered by price suppression and uncertainty surrounding regulatory developments.
According to Arnold, the past few months have not seen the anticipated price surges. Instead, the market has faced significant fluctuations, partially influenced by uncertainty over how the Trump administration intends to approach cryptocurrency regulation. “There was a lot of hype built as Donald Trump came into office, which initially fuelled excitement in the crypto market. However, since taking office, we haven’t seen the kind of policy delivery many were expecting,” Arnold explains.
The Trump administration and crypto market sentiment
Trump’s evolving stance on cryptocurrency has been a key discussion point. While his previous term was marked by scepticism, recent initiatives suggest a shift in his approach. One of the most surprising developments is Trump Media’s partnership with Crypto.com to launch ETF products. Arnold acknowledges that such a move is unprecedented for a sitting president and raises questions about its potential market impact. “It’s not something we’ve seen before, and it introduces an element of unpredictability,” he notes.
Beyond media partnerships, Trump’s administration has focused on creating a strategic crypto reserve. However, the market’s reaction to this has been mixed. “Many expected the US government to invest billions in Bitcoin, but instead, they took a budget-neutral approach and used existing holdings. That dampened expectations somewhat,” Arnold explains.
The role of regulation in market stability
The debate over cryptocurrency regulation continues. Some argue it legitimises the industry, while others fear it stifles innovation. Arnold highlights growing global regulatory efforts, with more governments engaging in crypto discussions. SA stands out as a leader in crypto regulation on the continent. New measures, including the travel rule, already familiar to Luno in markets like Malaysia, aim to enhance transparency and security.
While regulatory grey areas remain, Arnold sees progress. Regulation is moving from bans to structured frameworks, empowering investors with grievance mechanisms and platform legitimacy checks via the Financial Sector Conduct Authority (FSCA).
Luno focuses on offering a secure entry point for businesses and individuals navigating the evolving regulatory landscape. “Our goal is to ensure users can invest and transact safely,” Arnold explains.
One example is the stablecoin framework under discussion. Stablecoins are gaining popularity among businesses as a reliable financial tool, yet no clear global guidelines exist for their integration with traditional economies. The recent regulatory discussions on stablecoins indicate a move toward treating different digital assets according to their unique properties rather than placing them under a single regulatory umbrella.
Is now a good time to invest in crypto?
Arnold emphasises a long-term approach to crypto investing. “Every time is a good time to get into the market. Sometimes prices are high, sometimes they are low, but trying to time the market is rarely a good idea. The best time to invest is always yesterday.”
Arnold encourages new investors to start small and learn about the market before making significant commitments. “Luno offers tools like our crypto bundle, which allows users to invest in a diversified set of top cryptocurrencies with as little as R10. Watching the market daily and understanding how global events impact crypto prices can be an excellent way to build confidence.”
Expanding access to emerging crypto projects
Luno has traditionally been selective about the cryptocurrencies it lists, offering a smaller range of vetted assets compared to competitors with hundreds or even thousands of options. However, the company is now expanding its selection.
“We’ve been cautious because listing a coin comes with an implied endorsement,” Arnold explains. “But after years of refining our assessment process, we’re now confident in evaluating emerging projects. We want to give South African investors access to early-stage assets, which they previously had to seek on international platforms.” This shift means that Luno plans to significantly expand its token offerings, with an ambitious goal of launching nearly 100 new tokens by the end of the year. “This will be a record for Luno and will ensure that customers have a variety of assets to suit different investment strategies, whether for payments, speculative investments, or long-term growth.”
What’s next for Luno?
Looking ahead to 2025, Luno is focusing on expanding its offerings and improving services for both retail and business clients. “We’re developing new tools to support businesses, from large corporations to small enterprises, helping them integrate crypto more effectively into their financial strategies.”
Despite market fluctuations, Arnold remains confident in the long-term trajectory of cryptocurrency. “The market is healthier than ever, and we expect major shifts in the next few years. Within five years, I believe 80% of South Africans will own some form of cryptocurrency, either directly or indirectly.”
