South African Crypto Exchange Sets Strange Crypto Withdrawal Limits to Restrict Illicit Actors

Luno crypto exchange of South Africa added a new strange feature in the user’s account and imposed a withdrawal limit to roll out “act as a deterrent for illicit actors moving large amounts of funds within the crypto ecosystem.”

Luno is a crypto exchange of South Africa and known for its security, but a report says that this exchange imposed “dynamic risk-based limits” on the accounts of their clients.

Here it should not be clearly said how it works and how a user can identify the Withdrawal limit. This is totally different from the send fund withdrawal limit. 

A client of Luno, tried to transfer the funds from the Luno to Binance then he failed and when he asked the Luno support then he got the answer that the exchange is trying to give safety and security to their users that is why they restricted users under this “dynamic risk based limits”. 

“protect our customers and in an effort to comply with best practices in anti-financial crime and anti-fraud.”

Luno exchange also explained that this dynamic limit totally depends upon the risk score of the users and it will vary from user to user. 

In the end, Luno didn’t reveal how a user can calculate his risk score and how he can figure out his withdrawal limit based on risk score. 

The general manager for Luno Africa, Marius Reitz, quoted the report and explained how the risk score of a user depends on different types of data points.

“As part of the wider concept of a risk-based approach mentioned, for instance in the Financial Intelligence Centre Act (FICA), customer risk profiles are designed and scored based on a multitude of different data points”

Reitz also explained that Luna users can maintain risk scores by making their own account up-to-date and secure by enabling the safety features with all the guidelines. 

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