July 16, 2026, 5:00 AM HST

Strict Enforcement and Steep Penalties

Cryptocurrency exchange Luno has launched a formal challenge against a proposed overhaul of South Africa’s foreign exchange laws, arguing that the National Treasury’s plan to bring digital assets under an apartheid-era capital flow regime is unconstitutional because it bypasses Parliament. The challenge was detailed in Luno’s formal submission to the National Treasury on the Draft Capital Flow Management Regulations.

The draft rules, jointly published by the Treasury and the South African Reserve Bank for public comment, aim to modernize the country’s exchange controls. However, Luno warns that the proposal contains highly restrictive measures that threaten fundamental property and privacy rights.

As previously reported by Bitcoin.com News, the draft regulations seek to replace South Africa’s 1961 Exchange Control Regulations with a risk-based system focused on monitoring cross-border transactions and combating illicit financial flows. Violations could carry penalties of up to five years in prison, a fine of $53,000 (1 million South African rand), or both.

In its submission, Luno raised serious alarms over three specific enforcement provisions: asset seizure without court orders, forced liquidations and business-ending sanctions. Marius Reitz, Luno’s general manager for Africa, argued that changes of this magnitude must not be enacted via ministerial regulation.

“By proceeding through ministerial regulation, the executive branch effectively bypasses the democratic process for changes that will affect the fundamental property and privacy rights of millions of South Africans,” Reitz said. “They should, in our view, have been enacted as a new Act passed through Parliament.”

Luno further charged that the National Treasury is contradicting the central bank’s own policy roadmap, which identifies stablecoins as potential future money capable of facilitating low-cost, borderless payments. Yet, Luno argues, the Treasury’s draft regulations treat all digital assets as identical, bringing bitcoin, stablecoins and tokenized real-world assets under the same restrictive capital flow framework.

“By attempting to capture every digital asset regardless of utility or economic function, Treasury risks unintentionally stifling South Africa’s broader blockchain technology sector,” Luno stated.

Proposed Solutions for Industry Growth

The exchange warned that the proposed reporting requirements for transactions above an unspecified threshold would create an “unmanageable administrative burden” for platforms and the state alike, given that large transaction volumes are processed within seconds.

“Our experience demonstrates that overly restrictive regulation simply pushes digital asset activity underground or offshore, beyond the reach of domestic regulators and tax authorities,” the company added.

Meanwhile, the crypto exchange’s submission also shared several key recommendations to resolve some of the friction points. First, Luno calls for the enactment of the final crypto capital flow framework through an Act of Parliament rather than executive regulation. It also recommends the designation of crypto assets bought and held on South African-licensed exchanges as onshore assets.

Luno wants regulations to distinguish between digital asset classes based on economic function while dropping the proposed forced-sale and warrantless asset seizure mechanisms. Non-resident international trading firms must also be allowed to continue operating in the South African market under appropriate registration to preserve market liquidity.

“South Africa needs a regulatory framework that protects the integrity of the digital asset system without stifling the innovation, investment and economic growth that the digital asset sector is uniquely positioned to deliver,” Reitz said.

The New York-based asset manager posted adjusted earnings per share of $13.91, up 15% from a year ago, and adjusted operating income of $2.9 billion, a 39% increase. On a GAAP basis, diluted earnings per share reached $12.19, up 20% year over year.

Blackrock’s assets under management (AUM) reached a whopping $15.3 trillion, driven by $868 billion in net inflows over the trailing 12 months and 10% organic base fee growth.

Record Inflows Push Assets to $15.3 Trillion

According to the firm’s second-quarter 2026 earnings, Blackrock brought in $192 billion of net inflows during the second quarter alone, contributing to the strongest first half in the firm’s history. Flows through the first six months of 2026 topped $321 billion, more than double the total from the same period last year.

During the earnings call, Chief Financial Officer Martin Small told analysts on the earnings call that the results reflect Blackrock’s position at the center of mega trends reshaping public markets, private markets, and technology. The company’s adjusted operating margin hit 45.9%, its highest level in nearly five years, expanding 260 basis points from a year earlier.

Ishares, Blackrock’s exchange-traded fund platform, crossed $6 trillion in assets under management, roughly doubling in three years. The unit pulled in $178 billion of net inflows in the quarter, led by $85 billion into core equity ETFs and $61 billion into index bond ETFs. Active ETFs added another $20 billion.

Tokenization Push Moves From Concept to Filings

Blackrock disclosed it has filed two registration statements with the Securities and Exchange Commission (SEC) for tokenized money market funds. One would create a tokenized share class on ethereum for an existing fund. The other is described as a digitally native strategy with features like daily dividend reinvestment.

Small explained that the filings are meant to connect Blackrock’s cash management products to investors who already hold assets in digital wallets. He noted the funds are expected to operate across multiple blockchains, with stablecoins supporting subscriptions and redemptions directly on chain.

“When we talk about tokenized assets, tokenized assets are the spear tip into an entirely new distribution channel,” Small explained, pointing to an estimated 5 billion digital wallets worldwide as a long-term growth opportunity for the firm.

Bitcoin, Ethereum and Stablecoin Business Expands

Blackrock now has roughly $110 billion in AUM connected to digital assets, according to Small. The firm’s Ishares Bitcoin Trust, Ethereum Trust, and its BUIDL tokenized fund remain the largest products in their respective categories. Blackrock has set an internal target of turning digital assets into a $500 million revenue business as part of its 2030 growth plan.

The company also manages $60 billion in reserves for stablecoin issuer Circle, which Small disclosed represents about a quarter of the $300 billion stablecoin market.

Despite a decline in bitcoin and ethereum prices during the quarter, Small detailed that Blackrock’s European bitcoin ETF took in more than $650 million in international demand. He attributed the flows to investors treating bitcoin as a small, diversifying allocation inside broader portfolios rather than a core holding.

Blackrock’s financial tables showed digital assets as a product category recorded $3.1 billion in net outflows for the quarter, with digital asset AUM falling to $48.8 billion from $60.7 billion in the first quarter, reflecting the price declines Small referenced.

Fink Points to Strong Market Fundamentals

Fink used much of his prepared remarks and the question and answer session to lay out his view of the broader economy. He described a market environment marked by rising corporate earnings and technology-driven productivity gains.

“Market fundamentals are strong and well supported, with higher margins and earnings momentum catalyzed by new technology,” Fink said in the earnings release.

Fink added:

“The scale and depth of our client relationships globally have never been greater.”

On the call, Fink pointed to U.S. equity markets climbing to new highs and said returns are broadening beyond American stocks. He also addressed the dollar’s role in global portfolios, noting the currency’s volatility is tied closely to Federal Reserve policy on interest rates.

Fink also highlighted Blackrock’s role supporting the U.S. Treasury Department’s newly launched Trump Accounts program, with two Ishares ETFs expected to become investment options later this year. He closed the call on an optimistic note.

“Our momentum is accelerating, and I’ve never been more optimistic about the growth ahead,” Fink stressed.

What Comes Next

Blackrock raised its planned 2026 share repurchases to $2 billion, up from prior guidance, after buying back $450 million in stock during the quarter. Executives said they expect quarterly buybacks of at least $550 million going forward, citing confidence in free cash flow growth.

The firm’s private markets business, built around its HPS and Global Infrastructure Partners acquisitions, added $15 billion in net inflows during the quarter. Executives said infrastructure and private credit deployment activity have been among the busiest periods on record for the platform, with insurance companies increasingly seeking higher yields through private market allocations. Fink remarked that the firm has closed about $10 billion in high-grade and infrastructure debt mandates for insurers so far this year, a trend he expects to keep building.