Luno has been unable to process deposits or withdrawals in Malaysia since December 2017. This was due to our bank account being temporarily frozen.
Ours is a new and mostly unregulated industry, meaning the authorities often lack precedent or guidance. Luno has been working closely with The Internal Revenue Board (IRB) and Bank Negara (BNM) to help them better understand both Luno and the industry more broadly. This resulted in BNM issuing a policy document around reporting requirements for digital currency exchanges.
While we work towards a long-term solution for our Malaysian bank account, Maybank have agreed to help us process our customers’ withdrawals in batches over the next few months.
29 March 2018: We started manually processing all pending withdrawals with Maybank
23 April 2018: We reactivated withdrawal functionality, allowing customers to submit new withdrawal requests from this date onwards
2 May 2018: We will start manually processing all new withdraw requests
All withdrawals will be processed in batches. Larger transactions will be processed first, followed by all other withdrawals. As these transactions will be processed manually, they will take time to process and there will be a small administrative fee charged by our banking partners.
With a large number of withdrawals expected, we kindly ask for your patience while we process your request.
When will I receive my money?
We started processing all pending withdrawals (requested before 28 March 2018) on 29 March 2018. These withdrawals are being processed in batches. Larger withdrawals are being processed first followed by others in reverse order.
If you haven’t requested a withdrawal yet, we have now (as of 23 April 2018) re-activated withdrawal functionality, allowing customers to submit new withdrawal requests from this date onwards. We will start processing all new requests from 2 May 2018.
Maybank is processing all withdrawals in batches so different customers will receive their withdrawals at different times. Also, please allow some time for inter-bank transfer if you’re using a different bank. We estimate a maximum of three months to complete the full exercise.
Why is it taking so long?
Our current mechanism for processing withdrawal requests is solely limited to “manual intervention” transactions by Maybank. We have been forced to temporarily use “manual intervention” transactions because Maybank still hasn’t re-activated our account.
Rather than waiting any longer, we’ve negotiated with Maybank to allow customers to withdraw their funds first. We are also actively working on alternate solutions with other banking partners, to speed things up. We will keep everyone posted in case there are changes to the schedule.
I haven’t clicked “Withdraw” yet. How do I withdraw my money?
You can withdraw your money from Luno by clicking the “Withdraw” button on our website/app. This button was reactivated on 23 April 2018.
How much will I be charged for the withdrawals, and why?
Withdrawals will incur an administrative charge, imposed by our banking partners because the withdrawal requests are considered “manual intervention” transactions. We need to temporarily use “manual intervention” transactions because Maybank still hasn’t re-activated our account.
We have negotiated this administrative charge down to RM 0.32 (including GST) per withdrawal (compared to the higher fees announced previously).
All administrative charges will be paid directly to our banking services partner. Luno will not take any portion of these charges.
What is the limit for withdrawals? For example, can I withdraw all my money in one transaction?
If you have hit your account limits and would like to withdraw more, please send us a support ticket directly, and we will contact you to resolve the issue.
Can I still trade on Luno’s Exchange? What about the BTC/ETH/BCH in my Luno wallet?
You can continue to trade on our BTC/MYR Exchange as usual. Our Bitcoin and Ethereum wallets remain fully functional. You can also send and receive BItcoin and Ethereum as usual (and you can still send Bitcoin Cash or BCH out from Luno.)
When will deposits be reopened?
We are still working hard on solutions to re-enable deposits. We will make an announcement on deposits as and when we have any updates on that front.
Is Luno closing down in Malaysia?
No. We are fully committed to growing our Malaysia business, and will continue to do our best to serve our Malaysian customers.
Why is Luno only announcing this now?
Over the past few months we have tried our very best to have our bank account reactivated. However despite our best efforts, our bank has only recently agreed to allow withdrawal of our customer funds. Separately, they are still deciding whether to fully reactivate our bank account.
We understand that our customers have gone through a lot of frustration over the past few months. As such, we’re working with the bank to release withdrawals first, while planning on the next steps.
Will the exchange be shut down?
We will not permanently shut down the Luno exchange. We will continuously monitor the liquidity of the Luno Exchange. If large fluctuations in price are experienced, we may consider temporarily suspending our instant buy and sell feature, and/or the exchange to protect our customers.