South Africa’s FNB closes accounts of Luno cryptocurrency exchange

Luno, a Naspers-owned cryptocurrency exchange, said the First National Bank, FNB, has closed its accounts as part of the bank group’s decision to withdraw services to businesses within the cryptocurrency industry in South Africa.

In an official statement issued by Luno, the exchange said:

“We can confirm that Luno, along with other similar businesses, is affected by this decision. This means that FNB may be closing our business bank account in the second quarter of 2020.”

“We do not anticipate any impact to our existing or future customers, as we have other banking relationships in place to support deposit and withdrawals on the platform. Customers with FNB accounts will be able to deposit into Luno’s fully integrated Standard Bank account.”

“In the absence of formal regulations, banks will continue to assess their exposure to cryptocurrencies. Luno is committed to working with the South African Reserve Bank and collaborating with other regulators to ensure they are prepared to embrace this change to our financial infrastructure.”

“We need to remember that cryptocurrencies are very new and so this move is not unique to South Africa while regulation across the globe continues to be shaped; it is one of the biggest challenges crypto companies face globally.”

It is not clear if the development could lead to the closure of its accounts in South Africa. Luno is the largest digital currency exchange in Africa by trading volume.