Luno registers as reporting institution with BNM for digital currencies

Luno Malaysia says its registration is in compliance with BNM’s requirement policy on AML/CFT

By AFIQ AZIZ

UK-Based cryptocurrency exchange Luno has formally registered with Bank Negara Malaysia (BNM) as a reporting institution for digital currencies.

Luno Malaysia said in a statement yesterday that the registration is in compliance with BNM’s requirement policy on “Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) — digital currencies”.

“The policy document sets out the minimum requirements and standards that a reporting institution must observe — to increase the transparency of activities relating to digital currencies and ensure effective and robust AML/CFT control measures are put in place,” the statement read.

Luno head of countries Vijay Ayyar said the company will continue to engage with various government agencies including BNM and other global regulators over the past year to ensure that the industry is well understood, and that any risk could be mitigated.

“We view any steps toward regulation of digital currencies as a very positive sign,” he said.

According to the statement, Luno has also begun processing pending withdrawals in Malaysia since March 29, 2018.

The company had previously been unable to process withdrawals and deposits due to a temporary freeze on their Malayan Banking Bhd (Maybank) bank account.

“Currently, pending withdrawals are being processed in batches, while Luno continues to work on a long-term solution to process both ringgit withdrawals and deposits in Malaysia,” the statement said.

Country manager David Low said Luno is also conducting tests and working on solutions to process both deposits and withdrawals, which would allow the company to resume full services in Malaysia.

“Enabling Malaysian customers to have access to their funds is our main priority. Malaysia and more broadly, South-East Asia, are critical to our mission to bring digital currencies,” said Low.

The company is expected to reactivate its withdrawal functionality on April 23, allowing customers to submit new withdrawal requests. The new request will start the processing of all new requests on May 2, 2018.

Luno stated in its incident page report update that all withdrawals will be processed in batches, with high-value transactions to be given priority followed by all other withdrawals.

“As these transactions will be processed manually, they will take time to process and there will be a small administrative fee charged by Maybank,” it added.

Luno, which had just expanded its office in Kuala Lumpur recently, allows Malaysians to trade Bitcoin and Ethereum on its platform.

 

(The article has been edited for clarity and correctness based on the input from the related stakeholders.)