Why we’re making changes in the UK

The UK’s financial regulator, the Financial Conduct Authority (FCA), is changing the way it regulates crypto, with a number of new measures set to be introduced in early October and January 2024. This includes a requirement to display prominent risk warnings, a ban on promotional incentives to invest, and an obligation to ensure that all our UK customers have the appropriate knowledge and experience to invest in high-risk assets. 

As a result, we’re introducing some changes to Luno in the UK to make sure we meet these requirements. This includes ensuring our customers are aware of the risks that come with investing in crypto so they can continue to invest responsibly, with a new assessment that they will need to pass before they can invest. 

We have always stood against hype and bad practice in crypto, and support a sensible approach to investment based on the fundamental value this new technology has now, and will have in the future. Since our launch in 2013, we have always taken a proactive approach to ensuring the safety of our customers and the industry. A big part of this is working closely with regulators around the world to ensure we follow all necessary rules and regulations in the markets in which we operate. And where there aren’t rules, we voluntarily apply robust AML and CFT controls that, wherever possible, are based upon the laws and regulations that apply to the traditional financial services industry.

These new UK regulations are an important step for the crypto industry and support our mission to ensure all our customers invest responsibly and with full knowledge of the risks involved. Regulations help to protect your cryptocurrencies by lifting standards in the industry and stopping bad actors. Regulation is inevitable. It’s also necessary. Our firm belief is that regulation will raise the bar in the cryptocurrency industry and, in our experience, this is also what customers want. 

Cryptocurrency is maturing from a self-regulated industry to a regulated one, where individuals and businesses can introduce aspects of crypto assets into their daily lives, with investments and payments. For Luno it’s not about entering markets and making money quickly, but helping to build and establish a proper regulatory framework and fundamentally, upgrade the world to be a better financial system. Luno will therefore always adhere to the changing laws in any country that we operate in and will continue to work with regulators around the world, including in the UK, to put in place the appropriate regulatory frameworks that are optimal for all stakeholders and, ultimately, benefit you – the customer.