Luno Lists Rand Stablecoin ZARU Amid Regulatory Uncertainty
The rand-backed stablecoin ZARU has launched trading pairs on Luno exchange against two major dollar stablecoins, USDT and USDC. BlockTower, the issuer of ZARU, claims this is the first listing of an institutional-grade rand stablecoin on a large regulated exchange.
Luno's General Manager for Africa and Europe, Marius Reitz, said that South African companies would be barred from using cryptocurrencies for cross-border payments under the draft Crypto Assets Manual. He stated that failing to accommodate corporate cross-border stablecoin payments leaves South African businesses out of step with international payment rails.
The draft manual bars resident entities, including corporate treasuries, from engaging in cross-border crypto transactions deemed as import or export of capital. The regulation has sparked concerns about the fate of ZARU and its ability to facilitate rand-for-dollar transactions.