Luno Registers as Reporting Institution with Bank Negara Malaysiaby Fintech News Malaysia April 10, 2018
Popular cryptocurrency exchange platform, Luno, today announced that they have formally registered with Bank Negara as a reporting institution as required by the policy document: Anti- Money Laundering and Counter Financing of Terrorism (AML/CFT) – Digital Currencies (Sector 6) which was issued earlier last February.
The policy document sets out the minimum requirements and standards that a reporting institution must observe — to increase the transparency of activities relating to digital currencies and ensure effective and robust AML/CFT control measures are put in place.
It is important to note that while Luno is registered as an reporting entity, cryptocurrency exchanges are neither licensed nor authorised by the central bank, which means should there be any disputes or losses incurred there will be no established avenue for redress. Being a reporting entity just means that Luno has reporting obligations in respect to preventing money laundering and terrorism financing. Bank Negara has previously also warned consumers to conduct their own due dilligence when dealing with cryptocurrencies
“We view any steps toward regulation of digital currencies as a very positive sign,” said Vijay Ayyar, Head of Countries for Luno. “We will continue engaging with various government agencies to ensure that the industry is well understood and that risks are mitigated. We have been working closely with BNM over the past year and similarly with many other regulators globally”.
Meanwhile, Luno has also begun processing pending withdrawals in Malaysia since 29th March 2018. They had previously been unable to process withdrawals and deposits due to a temporary freeze on their Maybank bank account. Currently, pending withdrawals are being processed in batches, while Luno continues to work on a long-term solution to process both Ringgit withdrawals
and deposits in Malaysia.
“Enabling Malaysian customers to have access to their funds is our main priority,” said David Low, Country Manager for Luno Malaysia.
“We are also testing other solutions for processing both deposits and withdrawals, which will allow us to resume full services in Malaysia. Malaysia, and more broadly Southeast Asia, is critical to our mission to bring digital currencies to everyone, everywhere.”