Luno, the crypto-exchange backed by Naspers, did not see the bear market of 2018 as the disaster that many others did. It opened an operation in Zambia in April 2019 and plans to open offices in about 10 SADC and East African countries by the end of the year. In fact, the price decline and subsequent slowdown in trading on the Luno platform gave the startup company time to regroup, invest in its systems and expand — in a measured and controlled fashion.
The bull market of 2017 was fuelled by speculators and media hype, which in turn fuelled the production of more and more digital currencies, 95% of which are dubious, says Marius Reitz, Luno South Africa country manager.
Luno’s platform allows individuals in various jurisdictions, South Africa, Singapore and the European Union among them, to buy and sell just two currencies — bitcoin and etherium.
The company used 2018 to invest in its technology platforms and regulatory compliance. Where crypto regulations don’t exist, which is most jurisdictions, it works with the central banks and complies with the financial laws of that country, such as Anti-Money Laundering and Know Your Customer legislation.
“The uptake of cryptocurrencies has been strong in emerging markets,” says Reitz. “Financial systems are less developed in many emerging markets and moving money across borders is difficult and expensive.”
This is a view shared by Mark Mobius, co-founder of Mobius Capital Partners. Having previously adopted a cautious stance toward crypto, the veteran emerging markets investor told Bloomberg Daybreak Europerecently that emerging markets could be one of the fuels boosting the price of cryptocurrencies.
Read more at: https://www.dailymaverick.co.za/article/2019-05-22-africas-appetite-for-cryptocurrencies-surges/
