Luno Halts Crypto Trading for Some UK Clients Due to Regulatory Scrutiny
Luno exchange which is operational in 40 countries has decided to halt crypto investments for UK clients. The firm has cited new regulatory guidelines issued by the Financial Conduct Authority that will come into effect by 8th October this year.
The new stance has been confirmed by Public Policy head Nick Taylor as per a new statement issued to the media. The exchange was acquired by Digital Currency Group (DCG) in 2020. The policy changes at Luno are said to take place on 6th October, two days before the new regulations from the FCA are activated.
Meanwhile, the new regulatory guidelines issued by FCA dictate that crypto firms have to make some important changes to their platforms. As per Taylor, halting investing options for UK consumers is one of the regulatory compliance requirements for the consumers in crypto on a temporary basis.
Luno has informed the consumers via email that they will not be able to purchase or sell any cryptocurrencies on their Luno accounts after October 6th. Some of the new regulations by FCA include halting of mass marketing expeditions for crypto entities.
At the same time, crypto firms are directed to add clear risk assessment warnings and banning incentives in their public advertisements.
PayPal to Halt Cryptocurrency Purchases During October
In addition to Luno other crypto exchanges are also halting their crypto services during October. As pe the rules set by FCA, crypto entities may apply for a three months extension to comply with the regulatory amendments.
Taylor has claimed that the consumers are allowed to sell and withdraw their existing crypto holdings. He maintained that they are taking a delayed approach to offer better investment opportunities for their consumers.
Vijay Ayyar, the VP at Luno resigned from the firm in May this year after serving in his position for seven years. The exchange folded their operations out of Singapore after introducing a 35% downsizing in April. The downsizing took place as early as January this year.
Meanwhile, the firm restructured its executive brass in March this year while aiming to go for a public listing. On this account, CEO and co-founder of the firm Marcus Swanepoel took up a new role as chairperson.
US authorities opened an investigation into DCG after allegations extended by Gemini Trust founder. As per media reports, earlier this week Gemini founder Cameron Winklevoss has raised fraud claims against DCG founder Barry Silbert.
The exchange platform executive has purported that Silbert has misrepresented financial records for Genesis. Gensis is another subsidiary of DCG that filed for bankruptcy in January.
Gemini exchange that was one of the biggest institutional lenders at Genesis has sued DCG and Silbert in a bid to reclaim their losses. On the other hand, DCG has not refused any type of foul play. The allegations from Winklevoss have led to SEC, FBI, and Federal Prosecutors in New York opening investigation into DCG. However, authorities are yet to charge DCG or Silbert with any charges.
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