Be warned!! Your money is NOT safe on LUNO!!!

NarrowBandFtw said:
par for the course, your bank will also never disclose why if they take similar steps

the reason being if you tell a fraudster why you closed their account, then you are telling them how they got caught and you are helping them learn how to not get caught next time around

yes, many innocent people get caught in the crossfire like this, but it makes no difference to the fact that Luno, or VALR, or any major bank in South Africa for that matter will NEVER tell you why
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If a Bank closes your account, they have to let you withdraw your funds or transfer them. Unless they've gone to court to prove its stolen money - and a court order blocks it for whatever reason (you committed fraud, terrorism etc) they can't just take your money and run. Banks are regulated.

Crypto on the other hand...
 
Also, there's no such thing as just sending to any wallet anymore from some Exchanges. I sent from Revolut to a crypto wallet for something i wanted online and it got rejected by their system saying the target wallet address is flagged on their side. They don't give a reason why, just cancel an refund you.
 
Hxx said:
And yet again they emailed me to inform me about my account being closed.... NO reason provided. They make me feel like a criminal..... BE WARNED they can close your account anytime.... force you to sell your crypto @ sh*t prices or loose everything (gave me like 3 days).... Won't trust them again
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Sars wants to install a tjommie in your wallet.
 
Crypto being regulated kinda defeats the purpose. Bunch of kants
 
neoprema said:
If a Bank closes your account, they have to let you withdraw your funds or transfer them. Unless they've gone to court to prove its stolen money - and a court order blocks it for whatever reason (you committed fraud, terrorism etc) they can't just take your money and run. Banks are regulated.

Crypto on the other hand...
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read the OP's posts

Luno is literally telling him to withdraw, in this case meaning sell and send ZAR to a bank account

a bank would effectively be telling you the same thing: withdraw ZAR
no banks support crypto locally at all, and hence no local bank will allow you to send crypto out on any blockchain

that's comparing apples to oranges: pretending something a bank cannot allow to something a crypto exchange will not allow
fwiw there's method in the madness, going on chain significantly reduces the audit trail, they will not want to be party to whatever illicit activities a closed account might be performing afterwards

insisting on a ZAR withdrawal is the standard, auditable and regulated way to do it
 
NarrowBandFtw said:
Luno is literally telling him to withdraw, in this case meaning sell and send ZAR to a bank account

a bank would effectively be telling you the same thing: withdraw ZAR
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Difference being that with a bank you don't risk a loss. If you bought at R10k and BTC is now R2k and you're forced to withdraw - they've forced your hand into incurring a huge loss. Literally forcing someone to dump for peanuts on the open market in order to get their ZAR out.
 
saor said:
Difference being that with a bank you don't risk a loss. If you bought at R10k and BTC is now R2k and you're forced to withdraw - they've forced your hand into incurring a huge loss. Literally forcing someone to dump for peanuts on the open market in order to get their ZAR out.
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What if you bought foreign currency at a rate and are now forced to sell it at the current rate to transfer out?
 
saor said:
Difference being that with a bank you don't risk a loss. If you bought at R10k and BTC is now R2k and you're forced to withdraw - they've forced your hand into incurring a huge loss.
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no real difference, with a bank you could have invested in a unit trust, if they close your account you'd be forced to sell at whatever the going rate is

on the flip side if your crypto investment was in a stable coin the risk of loss would be greatly reduced, or if you left your funds in your ZAR wallet there would be no loss at all aside from fees

the one major difference is in crypto you don't need to keep your funds on an exchange at all. removing any and all control they have over you, try and do THAT with a bank ...
 
NarrowBandFtw said:
the one major difference is in crypto you don't need to keep your funds on an exchange at all. removing any and all control they have over you, try and do THAT with a bank ...
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Ja in the end that's it really. Left on exchange you have no choice but to swallow whatever kak they decide to pull. I'm lazy as well - still have a chunk sitting on binance.
 
saor said:
Ja in the end that's it really. Left on exchange you have no choice but to swallow whatever kak they decide to pull. I'm lazy as well - still have a chunk sitting on binance.
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I got rawdogged by "trusted crypto providers" in the past

don't have a cent left on any exchange, everything is in a private wallet
 
NarrowBandFtw said:
read the OP's posts

Luno is literally telling him to withdraw, in this case meaning sell and send ZAR to a bank account

a bank would effectively be telling you the same thing: withdraw ZAR
no banks support crypto locally at all, and hence no local bank will allow you to send crypto out on any blockchain

that's comparing apples to oranges: pretending something a bank cannot allow to something a crypto exchange will not allow
fwiw there's method in the madness, going on chain significantly reduces the audit trail, they will not want to be party to whatever illicit activities a closed account might be performing afterwards

insisting on a ZAR withdrawal is the standard, auditable and regulated way to do it
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My comment is around the bank not telling you why. A bank has to tell you why. They don't just randomly close accounts for no reason given to you except if instructed by a court of law to do so, or if terrorism or fraud is suspected.
 
neoprema said:
My comment is around the bank not telling you why. A bank has to tell you why.
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no they don't have to, and actually they typically don't

neoprema said:
They don't just randomly close accounts for no reason given to you except if instructed by a court of law to do so, or if terrorism or fraud is suspected.
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Luno isn't doing it randomly either, they just don't divulge that information, exactly like a bank.
 
NarrowBandFtw said:
Luno isn't doing it randomly either, they just don't divulge that information, exactly like a bank.
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But then the pessimist could also speculate at company that profits whenever you transact on it's platform forcing someone to transact in multiple ways. They can seemingly just arbitrarily decide to coerce you into initiating a bunch of transactions that benefit them. It's probably not the case, but if it was - there's zero transparency or accountability whatsoever. But then there's probably no avoiding that other than keep your crypto in your own wallet.
 
Firstly - choosing to store value in a under regulated instrument carries risk. So this should not be a big surprise.

Secondly - if you are selling at below the price you bought at. Cash out and buy the same again on another exchange. Worst case you are paying an admin fee but you end up with exactly the same amount of crypto again to hold onto until the price goes up again.

For bonus points claim a CGT loss with SARS and pay less tax.
 
die_koos said:
Firstly - choosing to store value in a under regulated instrument carries risk. So this should not be a big surprise.

Secondly - if you are selling at below the price you bought at. Cash out and buy the same again on another exchange. Worst case you are paying an admin fee but you end up with exactly the same amount of crypto again to hold onto until the price goes up again.

For bonus points claim a CGT loss with SARS and pay less tax.
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thirdly?
 
saor said:
But then the pessimist could also speculate at company that profits whenever you transact on it's platform forcing someone to transact in multiple ways. They can seemingly just arbitrarily decide to coerce you into initiating a bunch of transactions that benefit them. It's probably not the case, but if it was - there's zero transparency or accountability whatsoever. But then there's probably no avoiding that other than keep your crypto in your own wallet.
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at their scale it's too much effort to try and balance closing accounts for profit

they do however trade against you, that much is a fact, dynamic fee structures and spreads on certain pairs etc are actively manipulated on pretty much all exchanges for the exchange to generate more profit

some incentivize "market makers" to do that for them, some play "market maker" themselves and some use a combination of both, regardless: the little guy gets screwed every time
 
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