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Luno, the cryptocurrency investment app, has secured its Financial Services Provider licence

Registering with the FSCA

Luno, who are self described as the world’s ‘biggest’ cryptocurrency trading company, has secured its Financial Services Provider licence from the Financial Services Conduct Authority (FSCA) in South Africa (regulated under the FAIS Act).

‘Investing in crypto can be risky’

Investing in crypto can be risky. There are and have been many scams out there, and if things go wrong, you might not get your money back. Unlike when you get scammed at regular banks, crypto deals can’t usually be reversed.

Over the past few years there have been an increasing amount of people on social media and Whatsapp groups pretending to help people invest in crypto and lots of people have been taken for a ride. This has led to a need for better regulation in this previously unregulated space.

Better Protection & Accountability

For Luno customers, this means an extra layer of protection when investing in cryptocurrency in South Africa.

While such “investments” remain volatile with values going up and crashing down dramatically, steps like this are helping bring better protection and accountability.

With millions of crypto users in South Africa, this licence means that Luno meets the standards set by the FAIS Act and now operate under the watchful eye of the FSCA. The FSCA oversees financial service providers to ensure compliance and protect consumers.

In the near future, all crypto service providers in South Africa will be required to obtain an FSP licence. This step is designed by government to enhance security in the crypto industry by elevating standards and providing better consumer protection. 

‘someone can be held responsible if things fall apart due to skelmheid’

While this doesn’t make things 100% safe it shows that the people involved have taken reasonable steps to offer protection and someone can be held responsible if things fall apart due to skelmheid.

Luno says that they are determined to take the lead in regard to sticking to regulations as they roll out and providing a safe space for South African crypto users and are ‘committed to navigating these complexities to offer our customers an unparalleled crypto experience’.

When dealing with crypto it’s really important to do your homework, use trusted platforms like those with licenses from authorities like the FSCA, and be careful with your investments.

Debtfree Magazine does not promote or dissuade people from investing in cryptocurrency. It is a personal choice.