Luno To Update Process Of Transferring Cryptocurrency, Requires Users To Provide Confirmation
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(Image: The Malaysian Reserve/Razak Ghazali)

Cryptocurrency exchange Luno has notified users that it will soon be implementing some changes to the process of transferring cryptocurrency on its platform, requiring them to provide confirmation for their transactions. This is in line with an update to the Malaysian regulatory framework for digital asset exchanges (DAX), implemented by the Securities Commission Malaysia (SC).

According to an email from Luno, users will soon need to provide confirmation as to where they are sending their cryptocurrency to. “This will include the name of the virtual asset service provider (VASP, otherwise known as the cryptocurrency platform) or private wallet service that you’re sending it to, as well as the name of the recipient,” it shared. Other details that may also need to be provided include the recipient’s full name, date of birth, and country of residence (if you’re sending the cryptocurrency to an address belonging to someone else).

Similarly, when you are receiving cryptocurrency from someone, you’ll also be required to go through a similar confirmation process by providing such details.

At present, both the sending and receiving of cryptocurrency on Luno do not require any form of confirmation from users. Your cryptocurrencies will be automatically sent or received once you have keyed in the required details and approved the transaction on the Luno app.

Luno explained that these changes are brought about due to the SC’s move in updating its regulatory framework for DAX with the introduction of the Travel Rule. The Travel Rule is a directive that requires VASPs to gather details about the recipient of a crypto transaction, and to exchange information with the VASP on the other end of the transaction. The sharing of these payment instructions and details will then provide some security against money laundering and other suspicious transactions.

To note, the Travel Rule is not new; it has been applied to financial institutions – including banks – for the past decades. The rule was recently extended to the cryptocurrency industry by the Financial Action Task Force (FATF), an independent inter-governmental body.

Finally, note that these changes by Luno has not gone live yet; Luno said that you will receive another email when they are implemented. “You don’t need to take any action at this time – you will only be required to act when you go to send or receive crypto,” the cryptocurrency exchange stated.

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