Luna, a Digital Currency Group-owned cryptocurrency exchange, is winding down its operations in Singapore. On Monday, the London-based exchange said it will stop offering its services in the Southeast Asian country starting from June 20, 2023.
Luno’s announcement comes on the same day Kraken, a US-based crypto exchange, disclosed that it has successfully registered as a Virtual Asset Service Provider (VASP) in Ireland. Kraken secured the registration from the Central Bank of Ireland through its Irish subsidiary, Payward Europe Solutions Limited.
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— Kraken Exchange (@krakenfx) April 18, 2023
Luno to Exit Singapore
In a blog post on the company website, Luno explained that the decision to close down its Singaporean operations was taken "as part of a regular evaluation of our global strategy and presence.” It added that it has informed the Monetary Authority of Singapore of its intention to withdraw its license application.
Luno’s decision to leave Singapore comes over two months after the exchange cut down its workforce by 35% across all regions, citing “an incredibly tough year” 2022 for the crypto market. Marcus Swanepoel, the Co-Founder and CEO of Luno, noted that the prolonged bear market last year “affected our overall growth and revenue numbers.”
However, it is not the first time Luno is exiting the city-state. In 2017, Luno was forced to shut its business in Singapore following the suspension of its bank accounts. The suspension came amidst concerns over illicit financial activities facilitated using cryptocurrencies. However, the exchange re-launched its services in Singapore two years later.
Luno Gives Customers June 19 Deadline
Meanwhile, as part of the winding down process, Luno has given its customers in Singapore until June 19, 2023, to withdraw all their cryptocurrencies and or Singapore dollar (SGD) balance from their Luno Wallet.
“Please note that as of 00:00 (GMT +8) 20 June 2023, all Luno accounts belonging to Singapore customers will be closed, and you will no longer be able to log in and access your account,” Luno wrote in the blog post, adding that any digital asset not withdrawn after the deadline date will be sold at current market price and stored as SGD.
Furthermore, Luno noted that the cessation of its services in Singapore does not affect its customers in other regions. In a separate website update, the company particularly pointed out that its Singapore exit does not affect its operations in Malaysia as its services in the country remain fully available.
“We remain committed to driving safe and responsible adoption of crypto across Asia. This decision allows us to focus even more on providing customers with a great crypto experience in Malaysia, where we will continue to ensure Malaysians get secure and easy access,” Luno explained.
Kraken Secures Irish Registration amidst Troubles in US
Meanwhile, speaking on its new VASP registration in Ireland, Kraken noted that the move “demonstrates to both our clients and regulators that Kraken follows Europe’s most robust anti-money laundering and compliance standards.” The exchange added that the move shows its commitment to boosting crypto adoption across Europe “now and into the future.”
“With VASP registration and our growing local team in Ireland, we deepen our commitment to our Irish clients and their ability to access an extensive array of cryptocurrency assets,” Kraken explained.
The cryptocurrency exchange's new registration comes days after the digital asset firm filed for pre-registration with Canada’s Ontario Securities Commission (OSC) as part of its efforts to become a registered Restricted Dealer across all regions in Canada.
Meanwhile, Kraken’s registration in Ireland comes at a time the firm is facing regulatory pressure in the United States. In February, the digital asset company reached a settlement of $30 million with the US securities regulator and shut down its staking-as-service platform for US customers.
The settlement came amidst reports that Kraken was being investigated by the US Securities and Exchange Commission over its digital asset listings considered unregistered securities.
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This article was written by Solomon Oladipupo at www.financemagnates.com.
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