New Withdrawal Limits Reportedly Set by South African Cryptocurrency Exchange

New Withdrawal Limits Reportedly Set by South African Cryptocurrency Exchange

Overview

Luno, one of South Africa’s biggest cryptocurrency exchanges, has announced that it has established a withdrawals limit. Luno officials also explained why they took such a step, although the bitcoin business is rapidly expanding.

According to the exchange, the restrictions are intended to “serve as a disincentive for criminal actors moving huge sums of funds inside the crypto ecosystem,” according to the exchange. Due to this, they will implement strict restrictions and wash away unlawful participants from their transactions.

Details

The exchange stated that it had no choice but to take this action to maintain control over withdrawal restrictions. This was done to ensure that no money launderers or other terrorist-related criminal networks were making withdrawals.

Although the exchange has implemented the withdrawal limits, they do not set the limit criteria. There is no clear guidance in the conversation about the requirements for implementing a limit or even the limit in the first instance.

Luno Client Review

One client of Luno had discovered this when he attempted to transfer funds from Luno account to his Binance account. The client claimed that when he made the transaction, this failed. He tried many times but always got rejected. Then he visited the Luno website and learned that the exchange had updated the withdrawal limit section.

According to the anti-fraud and anti-financial crime laws, the exchange has put a limit.

The client’s money was attempting to withdraw more than the established limit once the new implementations were put in place. When the client tried to withdraw cash within the defined limit, the transaction was completed successfully.

Summary

Due to the above reasons, the crypto exchange has decided to place restrictions on the number of money consumers can withdraw. In this manner, they may restrain such rogue actors and prevent them from withdrawing substantial sums of money from the cryptocurrency ecosystem.

Editorial credit: StockBook / Shutterstock.com

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Tyler King

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