Luno, one of South Africa's largest <a href="https://www.luno.com/en">cryptocurrency exchanges</a>, has acknowledged that it has implemented new crypto client withdrawal limits. 

The limitations, according to the exchange are intended to “act as a disincentive for illicit actors transferring significant quantities of funds throughout the crypto ecosystem.” 
<h2>South African Exchange Luno Implements New Crypto Withdrawal Limits</h2>
Despite this <a href="https://www.luno.com/blog/en/post/lunos-view-on-regulation" target="_blank" rel="nofollow noopener">acknowledgment</a>, Luno has so far failed to explain how the exchange establishes the so-called "dynamic risk-based restrictions." 

According to a report, the limitations which are distinct from the send limits displayed on Luno's website were found by one of the exchange's clients. 

When the customer attempted to move crypto assets from a Luno account to a <a href="https://www.cryptoknowmics.com/news/binances-trust-wallet-to-allow-users-to-access-multiple-decentralized-exchanges/">Binance wallet</a>, the finding became clear.

When questioned, Luno indicated to the client(s) that the limitations were placed to “protect our consumers and to comply with best practices in anti-financial crime and anti-fraud.”

Furthermore, the clients were informed that “the limitations are dynamic in nature and are determined based on their overall customer risk score; the limits may vary from customer to customer.” 

However, according to Luno, the exchange “does not reveal how [the] send limitations are computed on an individual level.”
<h2>Customers of the Crypto Exchange Are Unable To Influence Their Risk Score</h2>
Meanwhile, the statement quotes Marius Reitz, general manager of Luno Africa, who explains why and how the broader notion of a risk-based approach is utilized to set the boundaries for each customer. He stated: 
“ Customer risk profiles are developed and assessed based on various data points as part of the broader notion of a risk-based strategy described, for example, in the Financial Intelligence Centre Act (FICA).”
While consumers cannot affect their risk score, they may “optimize their risk position by keeping their account information up to date, enabling safety features on their account, and generally keeping their account secure,” according to Reitz.

When questioned if the exchange had begun applying these dynamic risk-based limitations at the request of the financial surveillance agency (Finsurv), Reitz denied it. 

Instead, the general manager claims that Luno is acting in this manner because the exchange “takes the utmost care to maintain our financial crime measures as private as possible to ensure their continued effectiveness.”

South Africa's Exchange Luno Implements New Crypto Withdrawal Limits

Luno, one of South Africa's largest cryptocurrency exchanges, has acknowledged that it implements new crypto client withdrawal limits. 

Kavya Barua is a voracious learner who is fascinated by crypto and Fintech advancements. Graduated from Janki Devi Memorial College's B.A (Hons) English program at the University of Delhi. She aspires to be a successful professional, having a keen interest in learning and achieving results.

South Africa's Exchange Luno Implements New Crypto Withdrawal Limits

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