Luno Cryptocurrency Exchange To Penetrate the US Market.

In a recent interview, the General Manager for Africa for the Digital Currency Group, Luno, has said, the company is assessing regulatory regimes in all states of the US to allow for its roll-out in the course of the year.

“It is more complex than launching in an individual market because of the different states and different regulations within each of these states, so there are lots of moving parts,” Reitz said. “But it is a company focus for us for 2022.”

Fast-growing cryptocurrencies such as FTX and Binance are making momentous grounds in the US market. According to CB insights, the American economy houses more than half of the world’s crypto unicorns. A unicorn is a private start-up that has achieved a valuation of at least $1 billion. 

Luno was founded in 2013 and currently has nine million users from Asia through to Africa. Reitz says tokens such as bitcoin, ethereum, and ripple can be traded on the platform. He also said plans are underway so new coins can be added.

“A lot of the operation time goes into security and custody” when choosing a coin, he said.

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When Luno was first launched, Digital Currency Group was one of their earliest investors but later went on to completely buy it off. A year later, DCG turned its investment into $10 billion when it raised $700 million in a transaction led by the SoftBank group.

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Luno also received investors from Cape Town-based technology investor Naspers, a big listed company in Africa.

Luno has identified expanding opportunities in East Africa and has already begun operations in Uganda.

With their new aims of making it in the American market, a survey revealed that about 16% of Americans have invested, traded, or used cryptocurrency.

In the South African market, Luno is waiting for a new set of regulations that will help boost sales and protect the consumer. These new changes should allow the exchange platforms including Luno to bring onboard institutional investors that are willing to invest.

The rules could also make possible the listing of more sophisticated products. Reitz said that, in a year or two, he anticipates offerings such as cryptocurrency exchange-traded funds, which allow investors to hold a basket of coins without having to purchase them.

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The JSE has rebuffed efforts to list crypto ETFs before, citing a lack of a regulatory framework in the country.

“We have got all these asset managers sitting on the sidelines wanting to launch their own crypto products, but they’re not able to do so,” Reitz said. “As soon as we see regulation, you’ll see a flurry of crypto products being offered to investors in South Africa.”

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