Luno Halts Crypto Transfers Ahead of August 31 Deadline

Luno Halts Crypto Transfers Ahead of August 31 Deadline

Luno, a cryptocurrency exchange, has implemented restrictions preventing some customers from transferring their digital assets ahead of an approaching deadline. Affected users received a regional-exit notice, restricting them from sending cryptocurrency to any external wallets or platforms.

Withdrawal Timeline and Account Closures

The final date by which affected users could transfer their crypto to external wallets was June 29. By August 31, they must withdraw any cash to their bank accounts before their accounts are permanently closed on September 1. Failure to do so may result in remaining balances being subject to monthly fees.

Details on Transactions and Fees

Prior to June 29, Luno had already begun to limit transactions on affected accounts, disabling deposits, purchases, and incoming transfers as of June 1. Users could still sell their assets and withdraw funds until the June deadline. After that date, no further crypto transfers are allowed, and users are advised to sell their holdings and convert to fiat currency.

Fees for Remaining Balances

Starting in December, balances not withdrawn may incur $52 in combined monthly fees. Luno will impose a $2 monthly inactivity fee, followed by a $50 dormancy charge. Accounts with balances below the equivalent of $10 cannot be processed due to minimum withdrawal thresholds and those funds will not transition to the manual withdrawal process.

Verification and Support Issues

Luno is advising customers who have not verified a bank withdrawal account to reach out to support, as deposits – which might have aided verification – are also disabled. Users who require assistance must submit a bank statement or letter from the last three months, reflecting their name and account details.

Company Focus and Future Steps

Luno has not publicly disclosed the regions affected by the account closures, stating that it is refocusing operations on core markets in Africa and Southeast Asia. This follows the company’s statement on July 28 about restructuring and reducing its global workforce by 20%.

Despite the company narrowing its operational footprint, Luno has not linked the account closures directly to any regulatory requirements or financial distress. Affected customers must rely on direct communications from Luno for guidance.

Conclusion

With pressing deadlines ahead, customers are urged to act quickly to ensure their assets are handled appropriately before the scheduled account closures. The concurrent job cuts and restructuring efforts signal Luno’s attempt to streamline its services and concentrate on select markets.