Account verification upgrades on Luno are taking longer than normal due to an influx of new cryptocurrency investors.
Luno uses a three-tier verification system for user accounts in each of the countries it serves.
Each tier has deposit and withdrawal limits and users are required to upgrade their account verification status to increase their limits.
The withdrawal and deposit limits for Luno accounts in South Africa are listed below:
- Level 1 – Deposits over all time: R15,000 / Withdrawals over all time: R15,000
- Level 2 – Monthly deposits : R50,000 / Monthly withdrawals: R50,000
- Level 3 – No limits
Each level of verification requires that users submit certain documentation to prove their identity and is enabled after the information is confirmed by Luno support staff.
Luno recently published an update stating that it was aware of the delays in upgrading account verification tiers and that the issue was due to the large number of users seeking verification.
Surge in interest
MyBroadband spoke to Luno’s Werner van Rooyen, who said that the large influx of customers has caused some delays in upgrading account verification status.
“We’ve seen an enormous influx of customers on our platform over the past few weeks,” said van Rooyen.
“We take regulation, compliance and our users’ security very seriously and unlike some other smaller exchanges we apply rigorous identity screening as part of our KYC and AML processes, which unfortunately means that it takes some time to onboard every customer,” he said.
van Rooyen also said that some customers can be upgraded within minutes, while others who might submit the wrong forms of identification or proof of residence will be delayed.
He said the delays are due to a backlog and shortage of capacity on Luno’s side in addition to customers submitting the incorrect documentation or making deposits using incorrect payment references.
The exchange has taken steps to improve its scaling in 2018 and has already increased its verification capacity by 200% by hiring additional support staff and optimising its infrastructure.
“While we’re doing our utmost best to both optimise our systems and build enough capacity to always be able to do this as quick as possible, unfortunately for us and the wider industry it’s been impossible to grow our staff at the same rate as this unforeseen demand in such a short time period,” said van Rooyen.