The South African exchange imposes withdrawal restrictions on anyone involved in illegal activity

<p>Markets and exchanges for cryptocurrencies have become extremely vulnerable to criminal activity. Indeed, exchanges are used to facilitate money laundering. This is why the South African exchange, Luno, restricts withdrawals to cope with the same. The restriction will be applied differently for each client and will vary by client. They hope that by doing so, they will significantly diminish illicit activity in the sector.</p> <p>What was the purpose of the South African trade?</p> <p>Luno's initial move was to suspend transfers to Binance from their platform. We are all aware of Binance's versatility, which makes it extremely easy to utilise it illegally. Luno has also implemented "dynamic risk-based constraints," which put distinct limits on various consumers. The unfortunate thing is that they failed to warn their users, and when a user attempted to move their cryptocurrency to Binance, they discovered the transaction failed.</p> <p>When asked why they instituted this additional restriction, they stated that it was to safeguard their users. Simultaneously, Luno stated that it will assist them in substantially improving their compliance with anti-fraud and financial crime regulations. Luno also declined to disclose how the risk scores used to determine the withdrawal limit are calculated.</p> <p>Users should follow Luno's advice</p> <p>Clients will have no control over their risk scores, the exchange made abundantly clear. It will have a large number of inputs from a range of different points that will contribute to the final score. However, users are advised to maintain their account details up to date to avoid being penalised. Simultaneously, they are advised to utilise security settings to prevent their account from being compromised.</p> <p>Additionally, Luno stated that the actions they are taking are not in response to a financial surveillance department request. Indeed, they are doing so independently to ensure that financial crimes are avoided and that the exchange is extremely secure to use.</p