"I wonder why Luno is acting like this?"
Luno, a subsidiary of London-headquartered Digital Currency Group (DCG) is in the process of terminating its services in Singapore as part of a reassessment of its global presence and strategy.
It is not an easy decision, but Luno will always examine the development of Singapore as the country has the potential to lead the use of cryptocurrencies that can build a fair and robust financial system.
In April 2022, financial regulators in Singapore gave approval to Luno to offer crypto services for local investors, but now the company is instructing customers to withdraw their digital assets and Singapore dollars from Luno wallets by June 19.
For the record, several crypto companies such as Coinbase and Binance have applied for a license to operate in Singapore which is considered a digital asset friendly country.
However, Singapore's crypto market, which has experienced several failures, has led the country to take a tougher stance, where the financial watchdog wants to limit retail participation in crypto and put rules on the use of leverage.
Although Luno has left Singapore, the company, which was founded in 2013 and acquired by DCG in September 2020, has expanded its services in South Africa.
Luno also reduced the size of its entire team by 35% after the crypto market continued to experience a very significant drop.
