Cryptocurrency exchange Luno has announced that it will cease providing services to its customers in Singapore from June 20. The firm has informed the Monetary Authority of Singapore that it is withdrawing its application for a license to operate in the country as part of an “evaluation of [its] global strategy and presence.” However, customers in neighboring Malaysia are unaffected and the exchange will continue to operate there. Luno recently hired investment bank Canaccord Genuity Group to help attract new investors in order to finance its growth and expansion plans, with an eye on a public listing in the future.
Luno has given its Singaporean customers until June 19 to withdraw all funds they hold on the platform. The exchange is owned by Digital Currency Group, which is also the parent company of CoinDesk. The move comes as part of Luno’s efforts to reassess its global strategy and presence, and to focus on its growth and expansion plans. Luno is one of the leading cryptocurrency exchanges in Southeast Asia, and its decision to withdraw from Singapore is likely to have a significant impact on the local cryptocurrency market.
The decision to withdraw from Singapore is not entirely unexpected, as Luno has faced increasing regulatory pressure in the country in recent years. In 2019, the Monetary Authority of Singapore introduced new regulations for cryptocurrency exchanges, requiring them to obtain a license to operate in the country. Luno had applied for a license, but the process has been delayed, and the exchange has now decided to withdraw its application.
Luno’s decision to withdraw from Singapore is likely to be a blow to the country’s cryptocurrency industry, which has been growing rapidly in recent years. Singapore has become a hub for cryptocurrency and blockchain startups, and the government has been supportive of the industry, providing funding and creating a regulatory framework to support its growth. However, the regulatory environment in Singapore has become increasingly complex, and many cryptocurrency companies have struggled to navigate the regulatory landscape.
Despite its decision to withdraw from Singapore, Luno remains committed to its growth and expansion plans, and is looking to attract new investors to finance its expansion. The company has hired investment bank Canaccord Genuity Group to help with this process, and is reportedly considering a public listing in the future. Luno is one of the leading cryptocurrency exchanges in Southeast Asia, and its decision to focus on growth and expansion is likely to have a significant impact on the region’s cryptocurrency market.
In conclusion, Luno’s decision to withdraw from Singapore is a significant development in the country’s cryptocurrency industry. The move comes as part of the company’s efforts to reassess its global strategy and focus on growth and expansion. While the decision is likely to have a significant impact on the local cryptocurrency market, Luno remains committed to its growth and expansion plans, and is looking to attract new investors to finance its expansion.
