Digital Currency Group’s Luno crypto exchange plans to pull out of the Singapore market and scrap its application for a licence in the city-state.
Luno’s services won’t be available in Singapore from 20 June, and the exchange told the Monetary Authority of Singapore that it no longer wants a permit, the platform said in a blog post on Monday.
The move stems from “a regular evaluation of our global strategy”, Luno said, adding Singapore customers should withdraw tokens and funds by 19 June.
Luno in April 2022 said it had obtained in-principle approval from the MAS to provide digital payment token services.
Singapore since then has proposed curbs on crypto trading by retail investors, following last year’s US$1.5-trillion rout in digital assets. The plunge blew up a series of crypto outfits, including some with links to the city state.
The nation’s toughening stance has led to a reassessment of crypto potential there, particularly as Hong Kong seeks to create a hub for digital asset firms.
Luno wrote that Singapore still “has the potential to lead the way in using crypto to build a fair and robust financial system”.
Embattled crypto conglomerate DCG acquired Luno, which also has large operations in the UK and South Africa, in 2020. Luno is among a slew of firms that cut staff in recent months as the crypto sector retrenched.
Over a dozen companies, including Coinbase Global and Blockchain.com, have received in-principle approvals to provide digital payment token services in Singapore. — Sunil Jagtiani, (c) 2023 Bloomberg LP