Tag: Luno

New clause in South Africa’s advertising code for cryptocurrency

by Blockchain News

The Advertising Regulatory Board (ARB) in South Africa has introduced a new provision for the cryptocurrency business. This clause is intended to safeguard consumers against unethical advertising in the cryptocurrency industry.

A new clause was added to Section III of the advertising code for the nation of South Africa, and it stipulates that businesses and people in the country are required to comply by specific advertising standards relating to the offering of cryptocurrency-related goods and services.

‘Expressly and clearly’ stating that investments may result in the loss of cash “since the value is changeable and may go up as well as down” is something that all advertisements, including those for cryptocurrency offers, are required to do according to the first clause of the regulation.

In addition, advertisements indicating prospective investment losses must not contradict any cautions that are given.

It is essential that marketing communications for certain services and goods be presented in a way that is “clearly understood” to the target demographics.

Advertisements are required to provide statements that are fair and impartial on the returns, features, advantages, and dangers involved with the product or service being promoted.

Rates of return, predictions, or forecasts must also be fully supported, including a description of how they are computed and an explanation of what circumstances apply to the returns that are being promoted.

Any information referring to prior performance cannot be used to guarantee future performance or returns, and it should not be presented in a manner that generates “a favourable image of the marketed product or service.” [Case in point:]

It is inappropriate for advertisements placed by bitcoin service providers who are not also registered credit providers to promote the purchase of cryptocurrencies through credit.

Nevertheless, this does not stop service providers from promoting linked payment options that they provide to customers.

Additionally, it is going to be required of social media influencers and brand ambassadors that they will conform with particular advertising guidelines.

This includes the need that truthful information be shared, as well as the ban against giving advise on trading or investing in crypto assets and the prohibition against making claims of advantages or returns.

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Coindesk May Be Sold as Parent Company DCG Struggles

by Blockchain News

According to recent reports, the cryptocurrency news website CoinDesk is mulling over the possibility of being sold as its parent company, Digital Currency Group (DCG), wants to improve its financial standing.

The Wall Street Journal reports that CoinDesk has enlisted the assistance of investment bankers from the financial advising firm Lazard. These investment bankers are assisting the company in weighing its alternatives, which may include a whole or partial sale.

You know, I recently became aware that Coindesk is now available for purchase.

Charles Hoskinson, who tweets under the handle @IOHK Charles 19th of January, 2023 In the past few months, it has been reported that DCG has received multiple offers for the media company that are higher than $200 million. If these reports are accurate, this would represent an incredible return on investment for DCG given that the company was reportedly purchased by DCG for only $500,000 in 2016.

It would seem that Barry Silbert’s DCG is experiencing significant financial difficulties as of late. On January 17, the company informed its shareholders that it will be suspending dividend payments in an attempt to improve the soundness of its balance sheet and “preserve liquidity.”

On January 18, Bloomberg reported that another DCG subsidiary, crypto lending business Genesis Global, was intending to file for bankruptcy after it revealed that it owed creditors over $3 billion. This is undoubtedly the primary cause contributing to DCG’s current financial predicament.

According to the company’s website, DCG’s venture capital portfolio includes about 200 crypto-related startups, some of which include CoinDesk and Genesis.

The asset management company Grayscale Investments, the cryptocurrency exchange Luno, and the advising firm Foundry are all other businesses that are owned by DCG.

Some people believe that the article published by CoinDesk in November that revealed the irregularities in Alameda Research’s balance sheet was the first domino that eventually led to the collapse of the cryptocurrency exchange FTX as well as the liquidity issues that Genesis, its parent company DCG, and the broader cryptocurrency market are currently facing.

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London Music Venue Koko Partners With Luno, Embrace 122 Years of Culture With Blockchain

by Blockchain News

London’s historic live music venue, Koko, has entered into a partnership with cryptocurrency trading platform Luno.

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As reported by IQ, the essence of the partnership is giving this new platform for live music events to promote the values of music through blockchain technology. The partnership is worth multi-million pounds and will see the creation of the Luno in a new multi-format space at the top of the 1,500-cap theatre.

The Luno will be used for many purposes, including hosting digital art exhibitions, DJ Shows, and events that will be essentially focused on decentralized technology and digital currencies.

“Koko is about celebrating 122 years of culture whilst fiercely stepping into the future,” says Seb Croft, Koko’s commercial director. “Our partnership with Luno will allow us to be at the forefront of blockchain technology, supporting artists in new ways and providing game-changing experiences for fans. The opportunities for us to innovate together in the music and entertainment space are endless.”

After an investment of over 70 million pounds, Koko is rebranding as a new global music arena with a new launch date fixed for April 30th. The venue’s officials are optimistic crypto will play a very important role in the future of the music and are proactive enough to offer the support for their affiliated artists’ needs.

“Every day, the relationship between crypto and music grows stronger, with blockchain innovations beginning to revolutionise the industry,” said Sam Kopelman, Luno’s UK country manager. “With Koko, we look forward to working with artists and helping them realise the potential of decentralised technology, giving them greater control over their music and their futures.”

Crypto Platforms and Growing Traditional Industry Partnerships

It is not uncommon to find cryptocurrency-focused firms ink partnerships with traditional companies. These crypto executives are constantly exploring avenues to bolster the integration of these nascent asset classes in various industries.

Crypto.com has a similar partnership with Formula 1 team Aston Martin, and FTX.US has secured a 10-year naming right to the University of California, Berkeley’s Memorial Stadium.

Image source: Shutterstock

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Luno Floats Venture Capital Arm to Invest in Web3.0 & Fintech Startups

by Blockchain News

Luno, a digital currency platform owned by the Digital Currency Group (DCG), has launched Luno Expeditions, its Venture Capital (VC) outfit.

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As reported by TechCrunch, the new VC offshoot will engraft itself as a funding outfit for cryptocurrencies or Web3.0 startups and those in the Fintech space.

Luno Expeditions is expected to fund as many as 250 startups annually, complementing the investment strategies that have long been defined by its grandparent company, DCG. According to Emily Cheng, the named Chief Executive Officer of the new offshoot leading a team of five, the decision to focus on both crypto and fintech firms is hinged on the fact that the entire outlook of the digital currency ecosystem is still being built. Some fintech firms fill in the bridge or gap that crypto startups are yet to fill.

“There is still a lot of work to be done in building the infrastructure that crypto will rely on. So our aim is to be supportive of this broader ecosystem. So what this practically means is we will invest in fintech companies that we feel match that long-term thesis, not just any fintech company,” she said.

As much as $50,000 to $250,000 will be invested in startups while at their seeds or pre-seed stages. It comes in at about $15 million to $75 million annually. 

“We are likely to invest at the upper end of that range. Also, we have some flexibility, including writing larger cheques as we scale,” the CEO said. “The reason we didn’t go with a fund structure is that we don’t need any external funding to be able to build this business, both from a capital and management fee perspective. It also allows us to finance investments with evergreen capital, which we believe is more valuable to founders building companies in the fintech space and aligns all of our long-term interests better.”

The emergence of Luno Expeditions trails attempts by established companies, including Paradigm Capital, Coinbase Ventures, and Andreessen Horowitz (a16z), to pump into the fast-growing digital currency ecosystem.

Image source: Shutterstock

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Luno Forced To Remove Bitcoin Ads In U.K.

by Bitcoin Magazine

British regulators have forced bitcoin exchange Luno to take down ads recommending bitcoin purchases.

A creative advertising slogan curated by Luno, a United Kingdom-based bitcoin exchange, has been banned by the U.K.’s Advertising Standard Authority (ASA), according to a recent report from CNBC.

Posters displayed across the London Underground network and on London buses prominently stated slogans like, “If you’re seeing bitcoin on the underground it’s time to buy.” The ASA quickly demanded that the ads be taken down, declaring that the campaign failed to highlight the risks associated with investing in bitcoin.

The ASA declared that Luno must ensure that their future marketing communications make “sufficiently clear that the value of investments in bitcoin was variable and could go down as well as up,” per CNBC.

Paired with this, the ASA said that Luno needs to highlight that it and the bitcoin market at large are unregulated.

The ASA banning ads due to concerns that the price of bitcoin fluctuates while implying that the asset is not a safe store of value coincides with the beliefs of many central bankers across the globe. Yet these statements are inherently hypocritical, as all fiat currencies issued by central banks have devalued at a rapid pace over the course of history, clearly seen by the British pound’s massive devolution over time, for instance.

British regulators have forced bitcoin exchange Luno to take down ads recommending bitcoin purchases.

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The ASA proclaiming that the ad is “irresponsible” is a ridiculous notion. Most entities would rather promote fiat currencies than bitcoin. Yet, bitcoin is the only tool that protects one’s time from being stolen away. In reality, not promoting bitcoin is an irresponsible choice.

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‘Time to Buy Bitcoin’ Luno Ads Banned in the United Kingdom

by CryptoPotato

The UK’s Advertising Standards Authority (ASA) banned the trendy ”time to buy Bitcoin” Luno ads. The country’s officials called them ”irresponsible” and sounded an alarm of caution for inexperienced investors.

No More BTC Ads

The UK’s Advertising Standards Authority introduced severe restrictions for the crypto space in the past year. The British daily newspaper – The Guardian – reported today that ASA continued with its tough stance towards digital assets and banned the popular Luno ads.

The Cryptocurrency app grabbed the watchdog’s attention with its posters displayed at bus and Underground stations in London. ASA described the adverts with the slogan “If you’re seeing Bitcoin on the Underground, it’s time to buy” as highly misleading. It added that the aforementioned ads could lure inexperienced investors into the community without realizing the risks in the field:

”We concluded that the ad irresponsibly suggested that engaging in Bitcoin investment through Luno was straightforward and easy, particularly given that the audience is addressed, the general public, were likely to be inexperienced in their understanding of cryptocurrencies.”

In its turn, Luno responded that it would feature an ”appropriate risk warning” in future campaigns.

This is not the first time when ASA bans such ads in the UK. Earlier this year, the crypto exchange Coinfloor was restricted due to the same reasons. The regulator back then explained:

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”We understood that Bitcoin investment was complex, volatile and could expose investors to losses.”

Hard on Crypto

The United Kingdom takes a rather tough stance towards digital assets trading. As an example, last month, UK banks revealed their intentions to cease all crypto-related operations.

Morten Friis, NatWest’s head of risk committee and board member, categorized the institution’s move as “taking a cautious approach” towards the crypto ecosystem. He outlined “high risks” associated with digital assets and the lack of clear regulations as the primary reasons for the retreat:

”We have no appetite for dealing with customers, whether taking them on as new clients or having an ongoing relationship with people, whose main business is backed by an exchange for cryptocurrencies or otherwise transacting in cryptocurrencies as their main activity.”

Earlier this month, Bank of England Governor – Andrew Bailey – went further and warned that individuals who invest in digital assets risk losing all their money. Moreover, he added that the words ”crypto” and ”currency” should not be put together, suggesting that  ”cryptoassets” is a more appropriate phrase.

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Papa John’s Offering Free Bitcoin To U.K. Customers

by Bitcoin Magazine

Papa John’s, which provided the first-ever real-world items bought for bitcoin, is offering U.K. customers a free bitcoin reward.

Leading American pizza franchise Papa John’s has announced a new offer for its U.K.-based customers, giving them the chance to receive about $14 (£10) in free bitcoin.

According to the terms and conditions on Papa John’s U.K. website, customers can claim the free bitcoin, along with a discount of about $21 (£15) following purchases of about $42 (£30) and above. The offer is valid until May 16, 2021.

The bitcoin reward is claimable via London-based cryptocurrency exchange Luno.

“To claim the £10 worth of Bitcoin, download the Luno app or sign up at www.luno.com,” per the website terms and conditions. “Create an account and verify your identity. Enter your promo code in the Rewards tab. You receive 10 pounds worth of Bitcoin instantly.”

The Papa John’s franchise has a history with Bitcoin. In 2010, the company became the first involved in a real-world purchase of bitcoin, though it did not know it was participating. In 2010, early Bitcoin enthusiast Laszlo Hanyecz infamously paid 10,000 BTC (worth some $550 million at the time of this writing) to a peer who bought him two large Papa John’s pizzas using fiat.

Hanyecz later disclosed to Bitcoin Magazine “that he spent something near 100,000 BTC on pizza that year.”

The Bitcoin community celebrates “Bitcoin Pizza Day” every year on May 22 as a celebration of this first-ever real-world transaction. 

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Unclear Crypto Regulations in South Africa Alarm Entrepreneurs

by Blockchain News

The uncertainty surrounding cryptocurrency regulations in South Africa is fueling the move by the country’s homegrown crypto firms to more crypto-friendly countries.

As reported by Bloomberg, the clamour by the country’s entrepreneurs, particularly invested in cryptocurrencies is yielding no fruits, a situation that is limiting potential growth.

With crypto trading platforms such as Luno with registered headquarters in the UK a commonplace in the country, it lends credence to the claims that South African authorities “have been incredibly slow in terms of regulation in the industry and that leads to businesses looking internationally,” said Revix Chief Executive Officer Sean Sanders, whose firm is considering relocating its headquarters to the United Kingdom. He added:

“In an unregulated environment, a customer arrives at our platform with scepticism, and rightfully so.”

Entrepreneurs shared with Bloomberg that the lack of clear regulations is also preventing businesses to promote their services via social media platforms including Facebook and Twitter, a situation that has dampened growth.

Additionally, there is a banking divide in dealing with digital currency service providers in the country. While institutions like the Standard Bank Group Ltd. provide unrestricted access to all of its services to crypto firms, entities like First National Bank has no banking relationships with virtual-currency exchanges or traders.

The lack of regulatory framework has also made it difficult for crypto platforms to operate bank accounts, said Luno head Marius Reitz. “In turn, this makes it very difficult for customers to buy Bitcoin with their local fiat currency.”

The regulatory situation in South Africa is as concerning as that in Nigeria, Africa’s largest cryptocurrency marketplace. With governments failing to embrace the next shift in innovations, emerging firms are either developing strategies to circumvent unfavourable regulations set out by the government, such as by leveraging peer-to-peer trading, or making moves to take their businesses elsewhere, where they will be more welcome.

Image source: Shutterstock

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