Key takeaways:
- The cryptocurrency platform Luno, whose parent company is Digital Currency Group (DCG), will quit the Singapore market.
- The exchange announced that it no longer sought authorisation from the Singapore Monetary Authority and decided to withdraw.
The Digital Currency Group‘s Luno crypto exchange has announced that it will cease services in the Singapore market later this month. The move is said to be part of a regular review of the business’s worldwide approach and position.
The initiative is a component of an ongoing assessment of its “global strategy and presence,” according to Luno in a blog post. The London-based company notified Singapore’s central bank and financial regulatory authority that it no longer wishes to conduct business in the city-state.
It is worth noting that DCG was one of the most significant participants in the events of the previous year in the crypto space.. DCG was embroiled in legal and financial battles as a result of the crackdowns on its subsidiaries.
Customers in neighbouring Malaysia are unaffected, and the exchange will continue to operate there, according to a separate statement from Luno.
Financial watchdogs in Singapore gave Luno their in-principle clearance in April 2022, allowing it to provide local investors with services relating to cryptocurrencies. This choice won’t affect our operations in other areas, according to Luno.
Singapore’s stricter stance on cryptocurrencies has caused its potential to be reevaluated, especially as Hong Kong tries to become a hub for businesses dealing in digital assets.
Singapore still has the “potential of paving the way in using cryptocurrency to build a fair and robust financial system,” according to Luno.
Customers were instructed to remove their digital currency and Singapore dollars from their Luno wallets by June 19.Luno accounts for all Singaporean users will be deleted on June 20 and they won’t be able to sign in or manage their accounts after that date.
If a consumer does not withdraw their cryptocurrency by June 19, 2023, it will be sold at the current market price and stored as SGD. Here, Luno’s Instant Buy/Sell charge of 0.75% will be applied.
Luno will continue to have the right to charge a monthly dormant account fee for holding the SGD on the user’s behalf after this date. Luno emphasises and admonishes vehemently that going forward it will levy an inactive account fee for unclaimed payments.
