Cryptocurrency Exchange Luno to Cease Services in Singapore in 2023

It is reported that the cryptocurrency exchange Luno will stop providing services to Singapore users from June 20, 2023. Users need to extract all cryptocurrencies or Singapore dollar from Luno before June 19. If users fail to withdraw their cryptocurrencies before June 19, these cryptocurrencies will be sold at the current market price and stored in Singapore dollar, and Luno’s existing 0.75% real-time transaction fee will apply to the sale.

The cryptocurrency exchange Luno will cease providing services to Singaporean users in June

The cryptocurrency exchange Luno announced that it will stop offering services to Singapore users starting from June 20, 2023. This news has caused some concern among cryptocurrency traders in the region, who are now being urged to withdraw any cryptocurrencies or Singapore dollars they have stored on the platform before June 19. Failure to do so may result in Luno selling their cryptocurrencies at the current market price and converting them into Singapore dollars, with Luno charging its standard real-time transaction fee of 0.75 percent for the sale.

Why is Luno Ceasing Operations in Singapore?

Luno’s decision to exit the Singapore market comes as the result of the country’s new regulatory guidelines for cryptocurrency exchanges, which were introduced in 2020. Under these guidelines, all cryptocurrency trading platforms operating in Singapore are required to obtain a major payment institution license from the Monetary Authority of Singapore (MAS). Luno is no longer meeting the qualification for the license, which makes it necessary for them to cease servicing Singaporean customers.

What Happens to User Funds After Luno Exits the Market?

Users are required to withdraw their digital currencies or Singapore dollars stored on Luno before June 19, 2023. If they fail to do so, their cryptocurrencies will be sold at the current market price, and the proceeds will be converted into Singapore dollars, which will be stored in their Luno accounts. Luno will apply its existing 0.75% real-time transaction fee for the sale.
It is important to note that Luno has assured its customers that all user funds will remain safe and secure during the withdrawal process. The company has implemented additional security measures to ensure a smooth transfer of funds from Luno to other wallets or bank accounts.

What Alternatives Do Users Have in Singapore?

Luno is not the only cryptocurrency exchange operating in Singapore, and other options will continue to be available for Singapore-based traders. Coingecko, Coinhako, and Binance are some of the most popular exchanges that users can consider as an alternative.

What Does This Mean for the Future of Cryptocurrency in Singapore?

The exit of Luno from Singapore’s crypto market comes as a blow to the industry, as the country has been making significant strides in embracing blockchain technology and digital assets. However, this move by Luno should not be interpreted as a setback for the industry. The exit is simply an adjustment in response to the new regulatory requirements. Even with Luno’s departure, the government’s support for the development and use of blockchain technology in various industries remains strong.

Conclusion

As Luno brings its services to a close in Singapore, customers are advised to withdraw their funds before the deadline to avoid incurring any transaction fees or losing their cryptocurrencies. Moving forward, it will remain to be seen how the regulatory environment for cryptocurrency exchanges in Singapore will evolve, but the government and the industry have shown an ongoing commitment to support the further development of blockchain technology.

FAQs

1. Why is Luno Exiting Singapore?

Luno is exiting Singapore because it no longer meets the qualifications for a major payment institution license from the Monetary Authority of Singapore (MAS). All cryptocurrency trading platforms operating in Singapore are now required to obtain this license under new regulatory guidelines.

2. What Happens to User Funds After Luno Exits the Market?

Users are required to withdraw their cryptocurrencies or Singapore dollars before June 19, 2023. Any cryptocurrencies left on the platform after this date will be sold at the current market price, and the proceeds will be converted to Singapore dollars, while a 0.75% real-time transaction fee will apply.

3. Can Singaporean Users Switch to Other Cryptocurrency Exchanges?

Yes, there are other cryptocurrency exchanges operating in Singapore that users can consider as an alternative, such as Coingecko, Coinhako, and Binance.