Digital Currency Group subsidiary Luno to pause certain UK services, citing forthcoming regulations

cyptouser9 months agoCryptocurrencies News241

Digital Currency Group subsidiary Luno to pause certain UK services, citing forthcoming regulations

Luna, a subsidiary of Digital Currency Group (DCG), will soon pause certain services in the U.K., according to a report on Sept. 11.

That report indicates that the company will halt some crypto trading features by Oct. 6 in advance of new rules set by the U.K.’s Financial Conduct Authority (FCA). Those rules will severely restrict how cryptocurrency companies can advertise their services; among other restrictions, these regulations will effectively ban crypto referral programs.

The current report states, based on an email sent to users, that Luno will pause buying and trading. However, Luno’s head of public policy, Nick Taylor, explained that users will be able to sell and withdraw their funds while services are otherwise paused.

Taylor also stated that the service pause will only affect “some customers” and their ability to invest. He did not explain which users will be affected.

He also suggested that Luno will reintroduce U.K. services at an undetermined later date and said the company will do so through a “phased approach.”

U.K. regulations could affect local firms

The news follows apparent financial difficulties for Digital Currency Group’s other subsidiaries. Gemini’s lending arm remains in bankruptcy proceedings and owes $3.5 billion to creditors. DCG’s wealth management subsidiary, HQ Digital, shut down in early 2023. Luno itself discontinued interest-bearing accounts in late 2022.

But whereas those concerns are related to liquidity issues that pervaded U.S. crypto firms, the latest change is due to regulatory changes that could reshape the U.K. market.

Other companies have also reduced their services in advance of U.K. regulations. PayPal, notably, announced that it will restrict its crypto services in the U.K. starting in October due to upcoming regulatory charges in the country. Similar to Luno, PayPal will block U.K. users from buying and selling crypto but will not prevent holding and selling.

Binance also withdrew from the U.K. in June, though it is less clear if that decision was due to the upcoming change or regulatory difficulties in general.


The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

US exodus as Revolut now ‘suspends’ crypto access in country amid regulatory uncertainty

Amid the evolving landscape of crypto regulation in the United States, financial technology company...

Craig Wright unable to provide sufficient evidence of funds in latest Satoshi court case

In the latest legal chapter of the ongoing Satoshi Nakamoto identity saga, self-proclaimed Bitcoin c...

Binance linked to money laundering scheme in Belgian extradition case: Bloomberg

Binance linked to money laundering scheme in Belgian extradition case: Bloomberg

Belgian authorities are seeking the extradition of a London-based fintech professional, Caio Marches...

New UK crypto laws pose stiff challenge for most firms, cautions Delphi Labs counsel

Delphi Labs general counsel Gabriel Shapiro warned that most crypto firms will struggle to comply wi...

Rising stock of regulated crypto companies as OANDA acquires Coinpass

Trading platform OANDA has announced the acquisition of a majority stake in Coinpass Limit...

Protect against new AI attack vector using keyboard sounds to guess passwords over Zoom

Protect against new AI attack vector using keyboard sounds to guess passwords over Zoom

A recent research paper from Durham University in the UK revealed a powerful AI-driven attack that c...