As per the latest reports, Luno, the largest cryptocurrency exchange in South Africa has made an announcement for its users. The exchange has made an announcement in regards to the withdrawal limitations that it has recently imposed.
The exchange has announced that it has now started restricting its clients from making withdrawals. Luno executives have also revealed the reason why they have made such a move while the cryptocurrency industry is constantly growing bigger.
The exchange has announced that it had to take this step in order to control the withdrawal limits. This was to make sure that no withdrawals were being made by money launderers or other syndicates involved in terrorist activities.
According to the exchange, the step they have taken would act as a deterrent against such elements. By doing this, they will be able to enforce strict rules and will be able to wash out illicit actors from their exchanges.
As the cryptocurrency industry continues growing in size and volume, the bad actors and money launderers are continuing with their foul acts. These bad actors are involved in money laundering and terrorist funding activities. However, these actors make withdrawals in significantly high figures than the common investors.
This is the reason why the exchange has made the decision of imposing limits on withdrawals that the users can make. This way, they can put a leash on such bad actors and stop them from making large withdrawals from within the cryptocurrency ecosystem.
Although the exchange has announced that it has already implemented the withdrawal limits, it is yet to confirm what limits it has set.
The exchange has provided no clear information as to what the criteria for the implementation would be on a limit or what the limit would be in the first place.
The sources have revealed that so far, the exchange has only implemented restrictions/limitations on the withdrawals. On the other hand, no limits have been announced, set, or imposed for sending funds. It was one of the clients who tried making a withdrawal from his Luno account into his Binance account.
According to the client, the moment he tried making the transfer from Luno to Binance, the transaction failed and it kept getting rejected. The client then visited Luno’s website where he established that the withdrawal limits section had been updated by the exchange.
With the new implementations in place, the amount that the user was trying to withdraw was higher than the set limit. When the client tried withdrawing funds within the set limit, it was successfully executed.
The exchange has announced that it has set limits in accordance with the anti-fraud and anti-financial crime regulations.