Luno Halts Crypto Trading for Some UK Clients Due to Regulatory Scrutiny

Exchange platform Luno operating in 40 countries has decided to suspend investment activity for its UK customers, citing the Financial Conduct Authority’s (FCA) new regulations to take effect aby 8th October. The firm’s public affairs director, Nick Taylor, has confirmed the suspension in a public announcement. The exchange system was acquired by Digital Currency Group (DCG) earlier this year. The suspension of activities is said to take place around 6th October, before regulations issued by the FCA come into full effect. New FCA regulations mean crypto services need to adopt several key changes to their networks.

Taylor has explained that halting investment opportunities for British consumers is a form of compliance for in the crypto world until the new rules have been fully enforced. Luno customers have been sent an email about the changes, stating they will be unable to buy or sell crypto from their Luno accounts after 6th October. Some of the clampdown with issued by the FCA include a ban on advertising and promotional exercises, the need to include outstanding risk warnings in advertisements, halt of mass campaigns.

Luno wasn’t the only firm forced to shut down in Octoberventure; many other companies have paused their crypto services as per FCA requests. The new directives from the FCA allow restricted step approaches, including a performance extension of up to three months. Unlike other suspensions coming into effect, Taylor made it clear that existing customers can continue to sell or withdraw crypto holdings they possess.

In accordance with the crypto status, Luno CEO and co-founder Marcus Swanepoel made the shift to serve as chairperson. Simultaneously, the company decreased employment rate by a lacklustre 35% during January 2021 and also restructured leadership opportunities in March.

Recent activity within the crypto technology has seen Gemini creator Cameron WinkleVoss extend corruption allegations to DCG establishment fellow, Barry Silbert. Trust provided finances to a subsidiary of the DCG whereby Winklevoss accused SiliconBert of disloyal representation moments prior to such uniting completely declining. This accusation incorporated SEF, FBI and Federal Prosecutors in New York getting involved in investigate DC and SiliconBert. So far nowadays, no charges have been sued against DCG of Silicon.

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