Luno has blocked crypto transfers for users in certain regions, requiring affected customers to sell their assets and withdraw cash by August 31 or face monthly inactivity and dormancy fees starting in September
Luno, a global cryptocurrency platform, has imposed new restrictions on users in select regions, blocking outgoing crypto transfers and setting a hard deadline for cash withdrawals. Customers affected by the change can no longer move their crypto to external wallets or exchanges and must instead liquidate their holdings and withdraw fiat to a bank account by August 31. After that date, Luno will close impacted accounts, and any remaining balances will be subject to monthly fees.
Withdrawal Restrictions
The restrictions began on June 1, when Luno disabled deposits, crypto purchases, and incoming transfers for users covered by its regional exit notice. Until June 29, customers could still sell crypto, withdraw funds to a bank, or transfer assets out. Now, with outgoing crypto transfers blocked, the only remaining option is to sell assets for cash and withdraw before the end of August. Luno has not publicly identified the affected regions or disclosed how many users are impacted, but its country availability page lists Kenya, Nigeria, South Africa, Indonesia, and Malaysia as supported, alongside a separate list of 33 unsupported countries.
Account Closures and Fees
After August 31, standard account access will end, and wallet functionality will be disabled the following day. Balances under $10 cannot be withdrawn through Luno's standard process and will be retained by the company. Users with more than $10 left after closure can request a manual withdrawal by contacting support and providing verified bank details, but this process does not restore full account access and may take three to five business days. Starting in September, Luno will charge a $2 monthly inactivity fee on remaining funds, with an additional $50 dormancy fee per month beginning in December, raising the total monthly charge to $52 for unclaimed balances. Luno has not clarified whether these fees or deadlines differ by jurisdiction.
Company Rationale and User Impact
Luno says the decision to exit certain regions is part of a strategy to focus on core markets in Africa and Southeast Asia. The company has not attributed the move to insolvency, security incidents, or regulatory enforcement. For affected users, the loss of outgoing crypto transfers means they can no longer preserve their assets in kind and must convert to fiat if they wish to withdraw. This development follows a broader trend of exchanges adjusting regional operations, as seen when Bitwise recently liquidated several crypto option ETFs amid capital return concerns-a move covered in detail in EgonCoin's analysis of Bitwise's ETF shutdown.
Market Context
As of June 2026, Luno remains a mid-sized player in the global crypto exchange landscape, with daily trading volumes typically ranging from $10 million to $50 million, according to data from recognized market aggregators. The company's regional exit comes at a time when regulatory scrutiny and compliance costs are prompting several exchanges to reevaluate their international footprints. Luno's fee structure for dormant accounts is among the highest in the industry, with the $52 monthly charge for unclaimed balances exceeding typical inactivity fees at most major exchanges.
When a crypto exchange restricts withdrawals or blocks outgoing transfers, users lose the ability to self-custody their assets or move funds to other platforms. This increases reliance on the exchange's operational stability and exposes users to additional risks, including potential account closure, loss of access, or unexpected fees. For U.S. users, such restrictions are a reminder to verify regional availability, withdrawal policies, and fee schedules before holding significant balances on any centralized platform. The ability to move assets freely is a core principle for many in the crypto community, and changes to withdrawal rights can have lasting consequences for user trust and market participation.
