Luno Crypto Exchange Stops Operating In Singapore, Here's Why!

LUNO crypto exchange stops its services in Singapore. (Photo; Doc. Cryptovantage)

JAKARTA - Luno, one of the Digital Currency Group's crypto exchanges, announced that it will shut down their services in Singapore, one of their main markets. This is part of a routine review of the company's "global strategy and existence", according to a post on Luno's official blog.

The London-based company notified the central bank and Singapore's financial regulatory authorities that it no longer wants to obtain permits to operate in the country. Luno said that this decision was not taken easily, as they always had a mission to empower crypto users. However, Luno mentioned that they believe that Singapore still has the potential to be an innovator in financial technology.

Reported by Blockworks, Luno had previously obtained principle approval from Singapore's financial regulators in April 2022, allowing them to offer crypto-related services to local investors. However, the company insists that their services in other regions will not be affected by this decision.

Luno also gave customers advice to withdraw crypto and Singapore dollars from Luno's wallet before June 19. A number of other crypto companies such as Coinbase and Binance have submitted or shown the intention to apply for a license to operate in Singapore, which was initially considered a crypto-friendly region.

However, Singapore is now taking a tougher stance on the digital asset industry after several crypto failures related to the country. Singapore's financial regulatory authorities are also considering limiting retail participation in crypto and setting rules on the use of leverage.

On the other hand, Hong Kong is preparing to become a digital asset center even though mainland China has a banned stance on the industry. Luno himself was founded in 2013 and once owned regional offices in Singapore and Cape Town. Although now they are leaving Singapore, the crypto exchange is actually expanding its services in South Africa.

The Digital Currency Group led by Barry Silbert acquired Luno in September 2020. DCG also has Grayscale, CoinDesk, Genesis, and Foundry, as well as participated in Luno's initial funding round in 2014. However, DCG had a crisis earlier this year when crypto broker Genesis frozen customer withdrawals and filed for bankruptcy in January.