Crypto exchange Luno is winding down its operations in the European Union as the company sharpens its focus on markets where it sees stronger long-term growth, particularly across Africa and Southeast Asia.
The company said customers in affected European markets have been notified about the decision and will be given time to withdraw their funds before services are discontinued. Luno added that the decision is part of a bigger effort to concentrate its resources on regions where it believes it can deliver greater value and continue expanding its business.
The decision comes as the European Union rolls out the Markets in Crypto-Assets (MiCA) regulation, a comprehensive framework that introduces stricter licensing, compliance and operational requirements for cryptocurrency companies. While MiCA is intended to create a single regulatory framework across the bloc, it has also raised the cost and complexity of operating in the region.
Rather than pursuing expansion in Europe, Luno said it has chosen to prioritise markets where cryptocurrency adoption continues to grow rapidly and where the company already has an established presence. These include countries across Africa, where demand for digital assets has been driven by cross-border payments, inflation and growing interest in alternative financial services, as well as Southeast Asia, another region experiencing strong crypto adoption.
Founded in 2013, Luno has built one of the strongest crypto brands in emerging markets. The exchange operates in countries including Nigeria, South Africa, Malaysia and Indonesia, serving millions of users with cryptocurrency trading, investment and payment services. The company is owned by Digital Currency Group (DCG), one of the world’s largest investors in blockchain and digital asset businesses.
Luno said the decision does not reflect financial difficulties but is instead part of a long-term business strategy. By reducing its presence in markets that require significant regulatory investment, the company hopes to dedicate more resources to developing products and services in regions where it expects stronger customer growth.
The announcement comes just days after Luno revealed plans to reduce its global workforce by about 20% as part of a wider restructuring. At the time, the company said it would increase investment in institutional crypto services, stablecoin infrastructure and business-to-business (B2B) products, signalling a broader shift in how it plans to grow its business over the coming years.
Luno is not the only crypto company reassessing its European strategy. Since MiCA began taking effect, several exchanges and digital asset firms have reviewed their operations, with some applying for new licences while others have chosen to scale back or leave certain European markets altogether. The regulation is widely viewed as one of the most comprehensive crypto frameworks in the world, but it also places higher compliance obligations on companies seeking to operate across the European Union.
For customers outside Europe, Luno said the decision will not affect its services. The company will continue operating in its existing markets while investing in new products designed for both retail users and institutional clients.
Luno’s exit from the European Union reflects a broader trend in the cryptocurrency industry, where companies are increasingly concentrating on markets that align with their long-term growth strategies. As regulation becomes more demanding in some regions and adoption accelerates in others, crypto firms are making more deliberate decisions about where to invest, expand and compete.