Digital currency exchange Luno, owned by troubled venture capital giant Digital Currency Group, will cease operations in Singapore from June 20, 2023. Although the reason for their departure from this market is not yet clear. They claim it is part of an ongoing assessment of their global strategies.
They also noted that this decision will not affect other areas of their business, they remain committed to the responsible adoption of cryptocurrencies in Asia. Customers have been urged to withdraw their funds by June 19, and any remaining cryptocurrencies after that date will be exchanged for Singapore dollars. Luno hopes that the move will help them focus more on providing services in Malaysia.
In early 2023, cryptocurrency exchange Luno made significant job cuts, affecting around three hundred specialists and accounting for 35% of its staff. However, restructuring the business has not stopped the exchange from trying to achieve its goals. It was announced in March that Luno wanted fresh investment to expand its market share and organise an initial public offering (IPO). The exact timing of Luno's listing on the stock exchange has not yet been determined.
Reports of cash difficulties have emerged in the case of Digital Currency Group (DCG), which owns Luno as part of its portfolio. Their subsidiary Genesis has already gone bankrupt, owing more than $3 billion but with only $150 million on its balance sheet.
In this regard, DCG is reportedly ready to put up for sale some assets, which may include Luno and the depository. However, no further information has been provided. Financial Times sources say DCG's permission to sell is valued at around $500 million.
