Crypto Platform Luno Sheds 35% of Workforce

<p>Luno, the digital assets <a href="https://www.financemagnates.com/terms/e/exchange/" class="terms__main-term" id="b5da6e64-2afe-421d-9b81-16404b7d59d6" target="_blank">exchange</a> based in London, announced a massive workforce reduction yesterday, feeling the harmful effects of the prolonged crypto winter and turbulence in the technology industries.</p><p>Luno Cuts Massive Part of Its Team</p><p>According to Wednesday's statement, Luno decided to lay off 35% of its current staff, translating to more than 300 professionals in all regions where the crypto exchange is currently operating. The London-based company runs other offices in Cape Town, Johannesburg, Lagos, Singapore and Sydney.</p><p>"2022 has been an incredibly tough year for the broader tech industry and, in particular, the crypto market. Luno, unfortunately, hasn't been immune to this turbulence, which has affected our overall growth and revenue numbers," Marcus Swanepoel, the Co-Founder and CEO of Luno, wrote in a statement on the company's blog.</p><p>Luno says it anticipated the industry downturn and was adjusting its business model to make it resilient to unfavourable factors. However, the speed of negative changes has put considerable strain on the original plan and proved inadequate. Consequently, the company has been forced to reduce the cost base and focus on the core business. Luno reassures that there is no impact on the liquidity of the existing business and the exchange's customers.</p><p>"Thanks to those who have helped us get this far, and also to those who will continue to drive forward our critical mission of putting the power of crypto into everyone's hands," Swanepoel concluded.</p><p>Watch the recent FMLS22 panel on crypto market structure.</p><p>Digital Currency Group Says Goodbye to 500 People</p><p>Cryptocurrency exchange Luno is part of the Digital Currency Group (DCG) portfolio, which includes CoinDesk, a cryptocurrency website, HQ Digital, an asset management company and Genesis, a failed cryptocurrency lender. </p><p>DCG slashed its workforce by 13% at the beginning of the year, cutting 66 full-time positions. Another 115 jobs were slashed in two rounds of layoffs at Genesis Global Trading. Subsequently, <a href="https://www.financemagnates.com/cryptocurrency/crypto-lender-genesis-files-for-bankruptcy-in-new-york/" target="_blank" rel="follow">the company filed for</a> <a href="https://www.financemagnates.com/terms/b/bankruptcy/" class="terms__secondary-term" id="41b3ef0d-d805-441d-8443-121890264e94" target="_blank">bankruptcy</a> protection.</p><p>HQ Digital ceased operations in January 2023, which could affect the position of at least 26 people, according to LinkedIn data.</p><p>In the meantime, Coindesk is reportedly for sale, which would help DCG raise additional funds to survive the current cryptocurrency winter, which was reported by The Wall Street Journal on January 18. Interest in buying the portal was confirmed by its CEO, Kevin Worth.</p><p>Luno Joins the Crypto Layoff Wagon</p><p>The problems of Luno and DCG as a whole are not isolated. Finance Magnates has repeatedly reported about plans of a number of digital asset companies to downsize over the past few weeks.</p><p>Gemini exchange <a href="https://www.financemagnates.com/cryptocurrency/third-times-the-charm-gemini-cuts-its-workforce-once-again/" target="_blank" rel="follow">announced its third round of job cuts</a>, in which it wants to reduce its workforce by 10%. Previously, the workforce was shed in June and July when Gemini laid off roughly 17% of its professionals.</p><p>Last week, a cryptocurrency software company ConsenSys <a href="https://www.financemagnates.com/cryptocurrency/consensys-joins-crypto-layoffs-with-11-workforce-cut/" target="_blank" rel="follow">announced a similar decision</a>. It confirmed its intention to reduce its current workforce by 11%, which translates into 100 full-time positions. Earlier, Coinbase, one of the largest cryptocurrency exchanges by volume, <a href="https://www.financemagnates.com/cryptocurrency/binance-hires-when-coinbase-cuts-employment-amidst-crypto-winter/" target="_blank" rel="follow">shared plans to lay off 20%, or 950 people</a>.</p><p>The reason for cost-reducing and job-cutting is usually the same: a prolonged cryptocurrency winter, falling prices of major assets, and declining confidence in the industry after the collapse of <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">FTX in November</a> and the failure of <a href="https://www.financemagnates.com/cryptocurrency/where-is-bitcoin-heading-following-terra-luna-turmoil/" target="_blank" rel="follow">Terra in May</a>.</p> This article was written by Damian Chmiel at www.financemagnates.com.

View Details

New clause in South Africa's advertising code for cryptocurrency

South Africa's Advertising Regulatory Board now covers cryptocurrencies. Ads must "expressly and plainly" warn investors of money loss. They must also provide balanced information on product returns, features, advantages, and dangers. (Read More)

View Details

Coindesk May Be Sold as Parent Company DCG Struggles

CoinDesk may sell. Digital Currency Group (DCG), its parent firm, looks to be struggling financially. DCG has received many bids over $200 million for the media group in recent months. (Read More)

View Details

South African rugby icon Siya Kolisi headlines new crypto advertising campaign

The Springbok captain features in a new advertising campaign promoting a long-term attitude towards cryptocurrency investing in South Africa.

View Details

Luno Floats Venture Capital Arm to Invest in Web3.0 & Fintech Startups

Luno, a digital currency platform owned by the Digital Currency Group (DCG) has launched Luno Expeditions, its Venture Capital (VC) outfit. (Read More)

View Details

Speculations on New Crypto Regulations of South Africa!

South Africa soon to bring out new crypto regulations. Announced officially regarding the news.  Mixed reviews among the citizens of

The post has appeared first on thenewscrypto.com

View Details

Luno Closes Curtain on Singapore as Kraken Secures Irish Registration

Luna, a Digital Currency Group-owned cryptocurrency exchange, is winding down its operations in Singapore. On Monday, the London-based exchange said it will stop offering its services in the Southeast Asian country starting from June 20, 2023.

Luno’s announcement comes on the same day Kraken, a US-based crypto exchange, disclosed that it has successfully registered as a Virtual Asset Service Provider (VASP) in Ireland. Kraken secured the registration from the Central Bank of Ireland through its Irish subsidiary, Payward Europe Solutions Limited.

?? We’re pleased to announce that Kraken has successfully registered with the Central Bank of Ireland (CBI) as a Virtual Asset Service Provider (VASP), affirming our commitment to helping drive crypto adoption in Europe ???? ??Learn more ?? https://t.co/mowesdqEGj pic.twitter.com/C2ScvDhpa1

Luno to Exit Singapore

In a blog post on the company website, Luno explained that the decision to close down its Singaporean operations was taken "as part of a regular evaluation of our global strategy and presence.” It added that it has informed the Monetary Authority of Singapore of its intention to withdraw its license application.

Luno’s decision to leave Singapore comes over two months after the exchange cut down its workforce by 35% across all regions, citing “an incredibly tough year” 2022 for the crypto market. Marcus Swanepoel, the Co-Founder and CEO of Luno, noted that the prolonged bear market last year “affected our overall growth and revenue numbers.”

However, it is not the first time Luno is exiting the city-state. In 2017, Luno was forced to shut its business in Singapore following the suspension of its bank accounts. The suspension came amidst concerns over illicit financial activities facilitated using cryptocurrencies. However, the exchange re-launched its services in Singapore two years later.

Luno Gives Customers June 19 Deadline

Meanwhile, as part of the winding down process, Luno has given its customers in Singapore until June 19, 2023, to withdraw all their cryptocurrencies and or Singapore dollar (SGD) balance from their Luno Wallet.

“Please note that as of 00:00 (GMT +8) 20 June 2023, all Luno accounts belonging to Singapore customers will be closed, and you will no longer be able to log in and access your account,” Luno wrote in the blog post, adding that any digital asset not withdrawn after the deadline date will be sold at current market price and stored as SGD.

Furthermore, Luno noted that the cessation of its services in Singapore does not affect its customers in other regions. In a separate website update, the company particularly pointed out that its Singapore exit does not affect its operations in Malaysia as its services in the country remain fully available.

“We remain committed to driving safe and responsible adoption of crypto across Asia. This decision allows us to focus even more on providing customers with a great crypto experience in Malaysia, where we will continue to ensure Malaysians get secure and easy access,” Luno explained.

Kraken Secures Irish Registration amidst Troubles in US

Meanwhile, speaking on its new VASP registration in Ireland, Kraken noted that the move “demonstrates to both our clients and regulators that Kraken follows Europe’s most robust anti-money laundering and compliance standards.” The exchange added that the move shows its commitment to boosting crypto adoption across Europe “now and into the future.”

“With VASP registration and our growing local team in Ireland, we deepen our commitment to our Irish clients and their ability to access an extensive array of cryptocurrency assets,” Kraken explained.

The cryptocurrency exchange's new registration comes days after the digital asset firm filed for pre-registration with Canada’s Ontario Securities Commission (OSC) as part of its efforts to become a registered Restricted Dealer across all regions in Canada.

Meanwhile, Kraken’s registration in Ireland comes at a time the firm is facing regulatory pressure in the United States. In February, the digital asset company reached a settlement of $30 million with the US securities regulator and shut down its staking-as-service platform for US customers.

The settlement came amidst reports that Kraken was being investigated by the US Securities and Exchange Commission over its digital asset listings considered unregistered securities.

Apple offers savings account; eToro adds Google Pay; read today's new nuggets.

View Details