Luno is exiting Singapore and withdrawing its license despite being granted in-principle approval last year.
Luno said the decision came from a "regular evaluation of our global strategy and presence" and still described Singapore as having "the potential to lead the way in using crypto to build a fair and robust financial system."
"We can’t wait to watch its journey and are proud to have been a part of it," the exchange said of the city-state.
Local customers will need to withdraw all their cryptocurrency by 19 June 2023, as their accounts will be closed on 20 June 2023, the announcement said.
Any remaining funds will be sold at the prevailing market price to the Singapore dollar, with Luno's existing instant transaction fees of 0.75% still applying.
License no more
According to Luno's statement, the exchange will be withdrawing its application for a crypto license with the Monetary Authority of Singapore (MAS).
"As a result of this decision, we have also informed the Monetary Authority of Singapore of our intention to withdraw our license application," Luno stated.
In April 2022, Luno was granted an IPA from MAS under the Payment Services Act (PSA), to provide Digital Payment Token (DPT) services in Singapore.
Malaysia still safe
Although Luno is withdrawing from Singapore, the exchange reassured its customers that the decision will not affect the Little Red Dot's neighbour Malaysia.
"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."
In January, Luno announced that Malaysia customer funds are safe despite widespread layoffs impacting the exchange.
Read more: Luno Malaysia Says Customer Funds Safe
"We are also confident that the changes announced will not have any impact on the services received by Luno Malaysia’s customers."
DCG woes
Read more: Gemini's Winklevoss Demands Sacking of DCG Chief
Amid DCG's turmoil, Luno announced a slew of layoffs in January 2023, cutting its global headcount by 35%.
Read more: DCG's Luno Slashes Headcount as Liquidity Crisis Deepens
In an internal memo shared with employees, Luno CEO Marcus Swanepoel said that it had been an "incredibly tough year" for the crypto markets which has affected Luno's "overall growth and revenue numbers."
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