Luno’s Marius Reitz on Why Africa Is Ready for Crypto 2.0

Africa’s crypto narrative is maturing from informal peer-to-peer (P2P) trading to institution-ready infrastructure. BeInCrypto contacted Luno, a crypto exchange headquartered in South Africa that operates across over 40 global markets.

Luno’s general manager for Africa and Europe, Marius Reitz, tells BeInCrypto how the crypto exchange is positioning itself as a regional powerhouse in Africa.

Luno As Africa’s Pragmatic Pioneer

Reitz started by revealing that Luno has outlived the boom-and-bust cycles that have come to define crypto since its establishment in 2013.

Its early focus on regulatory alignment and user-friendly experiences set it apart in an industry often plagued by volatility and regulatory whiplash.

In Africa, 57% of the population remains unbanked. Based on this, Luno’s mission goes beyond trading. The exchange crafts access to a modern financial system many have been locked out of.

“We’re driven by a bold vision to upgrade Africa and the world to a better financial system. After our launch in Kenya in 2024, we’re just getting started,” Reitz told BeInCrypto.

Stablecoin Surge and Real-World Demand

While much of the West obsesses over meme coins and ETF (exchange-traded fund) speculation, Africa’s crypto story is rooted in pragmatism.

In South Africa, stablecoins like Tether’s USDT have now surpassed Bitcoin in trading volume. According to Reitz, this surge is driven by the demand for inflation-resistant, dollar-pegged assets amid local currency devaluation.

Luno, already a major on-ramp for fiat-to-crypto conversions in the region, is adapting fast.

“Over the last 12 months, we’ve seen significant demand for stablecoins on Luno. We now offer low-cost USDT transfers across Ethereum and Tron, with competitive fees and bulk trade options for professionals via our Trade Desk,” Reitz shared.

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.

Regulation as a Catalyst, Not a Constraint

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 its framework.

“Crypto bans force the industry underground. We’ve observed that markets with regulatory clarity foster responsible innovation and consumer protection,” he explained.

However, challenges remain. If misaligned with market realities, South Africa’s upcoming classification of crypto assets as foreign or domestic investments could hinder institutional flows.

Meanwhile, the FATF Travel Rule poses technical and operational hurdles due to fragmented provider ecosystems. Still, Luno is prepared.

“As a regulated business, we’ve implemented the Travel Rule in other jurisdictions. We anticipate friction, but we’re ready,” Reitz articulated.

The FATF Travel Rule is set to take effect in May 2025, barely a month away.

Adapting to Fragmented African Realities

Across the continent, crypto adoption is outpacing infrastructure. Nigeria ranked second globally for crypto adoption, but this remains paradoxical as the country restricts naira P2P trading while fast-tracking exchange approvals under its ARIP framework.

For Luno, this means taking a hyper-local approach to compliance, education, and user experience.

“Africa faces significant challenges: regulatory fragmentation, limited banking infrastructure, and crypto-related scams. We address these with educational content, strong KYC/AML, and strong banking partnerships,” Reitz explained.

Mobile money is dominant in countries like Kenya and Nigeria. Luno’s mobile-native design and stablecoin access offer a compelling value proposition for both retail users and remittance providers.

Financial Inclusion, One Partnership at a Time

Beyond individual users, Luno is also becoming a key partner for fintechs and payment firms. Its custody and liquidity services now support cross-border on- and off-ramping for traditional and crypto-native partners.

“We receive inquiries from large multinationals wanting to shift part of their payments to crypto. Our infrastructure allows them to do so securely, compliantly, and efficiently Luno confirmed,” Reitz stated.

This is pivotal for Africa’s $48 billion annual remittance market, where stablecoins offer faster, cheaper alternatives to legacy systems.

What does the next five years look like for African crypto markets? For Luno, it’s a convergence of retail empowerment and institutional maturity.

“We expect 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,” the Luno executive told BeInCrypto.

Luno is already laying the groundwork. Its Trade Desk, custody solutions, and upcoming stablecoin expansions suggest 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 is compelling. While challenges around regulation and infrastructure persist, its blend of compliance, innovation, and education positions it among notable actors in Africa’s crypto arena.