Luno Blocks Some Crypto Transfers Ahead of August 31 Account Closure Deadline

General News
The trend toward using public blockchains in traditional finance (TradFi) sectors is gaining momentum, with major institutions like BlackRock pioneering the movement. According to Celisa Morin, a former executive at Grayscale and now head of the crypto department at Reed Smith, more traditional financial institutions are now opting to tokenize assets on public blockchains, following BlackRock’s example. A Shift from Private to Public Blockchains Celisa Morin, speaking in a recent interview, highlighted a shift in preference among traditional financial firms from private to public blockchains. This shift is attributed to the successful implementation of tokenized projects by leading financial giants. BlackRock, for example, recently launched a $100 million fund tokenized on the Ethereum network, signaling a major endorsement of public blockchains. Despite potential regulatory hurdles, such as the need for more stringent KYC and AML protocols on public networks, the benefits of transparency and accessibility seem to outweigh the challenges. Morin pointed out that while private chains like JPMorgan’s Onyx were popular in the past, the current trend strongly favors public options. Challenges and Opportunities in Tokenization The adoption of public blockchains is not without its challenges. BlackRock’s venture into blockchain led to its wallet becoming a target for spoofs and legally dubious transactions, highlighting the potential risks involved. Despite these issues, the move has been largely positive, with BlackRock’s tokenized fund now holding $288 million in assets. Other institutions, such as Franklin Templeton, have followed suit, launching tokenized funds like the Franklin OnChain U.S. Government Money Fund on Ethereum’s layer-2 network, Polygon. This fund alone has attracted significant investment, demonstrating the growing confidence in public blockchain technology within TradFi. Skepticism About Immediate Regulatory Approvals Despite the enthusiasm for blockchain technology, Morin remains cautious about the immediate future of cryptocurrency-related financial products, such as the much-anticipated Ethereum ETFs. She reflects on the slow regulatory progress and lack of communication from the SEC, suggesting that approvals for new ETFs may not be forthcoming as quickly as some might hope. Conclusion: Embracing Blockchain in TradFi As traditional financial institutions continue to explore and adopt blockchain technology, the landscape of finance is evolving. With leaders like BlackRock setting the pace, the integration of blockchain into traditional finance seems not only possible but inevitable, promising a new era of innovation and efficiency.

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Luno has begun restricting certain cryptocurrency transfers as it prepares to exit selected markets, urging affected customers to move or liquidate their digital assets before key deadlines. The exchange said customers in impacted regions will permanently lose access to their accounts on September 1, making August 31 the final day to withdraw remaining funds to linked bank accounts.

The phased shutdown has already introduced several restrictions. Customers can no longer add funds, buy cryptocurrencies, or receive crypto deposits. In addition, the deadline for sending crypto to external wallets has already passed in the affected regions, leaving users with only the option to sell their holdings and withdraw cash before the end of August.

Final withdrawal timeline

Luno outlined a structured wind-down process designed to give customers time to move their assets before accounts are closed.

Key milestones include:

  • Deposits, crypto purchases, and incoming transfers have been disabled.
  • Outbound cryptocurrency transfers to external wallets are no longer available after the designated cutoff.
  • Customers can still sell eligible crypto holdings and withdraw proceeds to verified bank accounts until August 31.
  • Accounts will be permanently closed on September 1.

The company said customers who miss the final withdrawal deadline may need to contact support for manual withdrawals if their remaining balances exceed the minimum required threshold.

Focus Shifts to Core Markets

Luno said the decision reflects its strategy to concentrate re

The exchange also reminded users that crypto transfers require additional security measures, including a waiting period when outbound transfers are enabled. It advised customers to verify receiving wallet addresses carefully and ensure compatibility with supported blockchain networks before initiating any transfers.

The phased withdrawal underscores the operational challenges crypto exchanges face as they adjust their geographic footprints and respond to evolving regulatory and commercial priorities. For affected users, the remaining weeks before the August 31 deadline represent the last opportunity to convert digital assets into fiat currency and withdraw funds before account access is permanently removed.

Raj Sharma
Raj Sharma
I have been involved in the blockchain industry for over 5 years and have an extensive understanding of the technology. My career in cryptocurrency started with writing articles about blockchain technology and its use cases for various publications.

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