Luno Malaysia Officially Launches Staking For Ethereum

Alex Cheong Pui Yin

26th January 2024 - 2 min read

Luno has officially launched its Ethereum (ETH) staking feature, which allows customers to earn up to 4% p.a. in ETH when they agree to stake their assets to support the network. This makes the digital asset exchange (DAX) the first regulated platform in Malaysia to offer such a service.

Staking refers to a way for investors to earn additional rewards by locking in their crypto assets to help secure and verify transactions on crypto networks that use the proof of stake consensus mechanism (hence the term “staking”). Once your crypto is staked, you cannot sell or send your coins; instead, it must be unstaked before you can do so.

In a statement, Luno said that its staking rewards will be provided on a weekly basis, and that it does not charge a fee to stake or unstake your assets. However, there is a 30% fee for its staking service, which will be deducted from the reward that customers receive. If you decide to stake your ETH on Luno, a staking wallet will be automatically created for you within the app; you do not need to manually set it up yourself.

“Staking through Luno removes the technical and financial barriers to entry for ordinary people looking to earn rewards with a minimum of 0.00001 ETH or RM1 to stake. Customers can receive rewards on crypto without needing technical knowledge to set up staking,” Luno shared in its statement, although it also stressed that investors must do their own research and due diligence before making any decisions.

The country manager for Luno Malaysia, Scarlett Chai said that Luno is thrilled to be the first regulated DAX in the country to offer staking for Malaysians. “Luno has always focused on making it safe and simple to buy, sell, and store crypto. As a trusted crypto guide, we have made it as easy as tapping a button on the Luno app to open a staking wallet,” she said, adding that this will appeal to individuals who are keeping their ETH for the long term.

With this latest update, Malaysia has become Luno’s second country to officially launch the staking feature, after teasing its arrival earlier this week. Prior to Malaysia, Luno had made the feature available to customers in South Africa last year. Moving forward, Luno said that it will be launching staking for Cardano (ADA) in the coming weeks.

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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