I’m a Luno User since 2015. Here’s My Luno Malaysia Review

This is my long-overdue Luno Malaysia review after being a long-time user.

Let’s start this article with this little tidbit of information:

Before Luno Malaysia, they were called.. BitX

I’ve signed up with Luno since December 2015, back when they were still known as BitX. They only rebranded into the Luno that you know in 2017.

I’m not sharing this info to be ter-paling crypto early adopter (I know people who were earlier!). More to prove that I’ve been using their services for a long time.

In this Luno Malaysia review, I’m going to cover Luno Malaysia platform ONLY. For other questions like what other crypto exchanges are available in Malaysia and what’s the difference between Bitcoin and Bitcoin Cash, please head over to The ULTIMATE Cryptocurrency in Malaysia Guide article – I’ve already covered it there.

Luno Malaysia Review: 6 Features You Should Know

In all my years of using the platform, I can say there are 6 areas where Luno Malaysia excels in:

#1 – Widest cryptocurrency selection in Malaysia

As of writing time, Luno Malaysia offers 10 cryptocurrency options – the widest cryptocurrency options among regulated exchanges in Malaysia.

The cryptocurrencies are: BTC, ETH, LTC, XRP, BCH, UNI, LINK, ADA, SOL and AVAX.

#2 – User interface (the UI/UX)

The Luno app is very easy to use, foolproof even. Trading knowledge is useful but not required. There are great security features (although the weakest link is always the humans themselves – more on this below)

#3 – Can set up repeat buy

You can set up crypto purchase monthly, weekly or even daily, from RM1. A great set-and-forget, sikit-sikit lama-lama jadi bukit strategy (the fancy term for this investment strategy is DCA – dollar cost averaging)

#4 – Cryptocurrency portfolios

Speaking of repeat purchase, now you can also invest in cryptocurrency ‘portfolios’ via Luno Malaysia! If you want to buy multiple cryptocurrencies, then this option would save you fees.

To purchase multiple coins in one purchase, go to the Explore page > Buy Multiple coins. You will see the option to buy:

• Luno’s most popular coins: Bitcoin, Ethereum and Ripple
• A piece of everything: All 10 cryptocurrencies that Luno Malaysia offers
• Choose your own coins: Pick and choose what you want

#5 – Generous Bonus for new users

New users can get RM75 in BTC on minimum RM250 deposit, which is instant 30% ROI!. To earn this, sign up with my code ‘7FA6G′.

Simply open a new account at Luno.com > Go to REWARDS > Choose ENTER CODE > Enter the given promo code > Click Apply Code > Deposit the minimum amount required > Buy the minimum transaction amount > Get rewarded with the additional Bitcoin.

#6 – Trustworthy

I want to expand on this part.

Is Luno legal in Malaysia?

Yes, Luno is legal in Malaysia. They are registered with Securities Commission Malaysia and regulated under the Digital Assets Guideline, issued on 28 October 2020.

In fact the initial batch of approved crypto exchanges in Malaysia – Luno, SINEGY and Tokenize – have my biggest respect. It’s not too far-fetched to say that without their perseverance in getting licenced, crypto wouldn’t be this mainstream.

Second is my own personal experience with the team. I don’t know what they do to promote such a community-focused culture in the organisation, but it’s great. Even from the early days, my interactions with Luno employees have been nothing but positive.

I even provided some work in an informal capacity (wrote some articles) and at one time interacted directly with co-founder and CEO of Luno, Marcus Swanepoel and he was super nice and respectful.

And the positive interactions continued on even now. The Luno Malaysia team reaches out from time to time to offer updates, benefits, support and learning opportunities. At one time, they conducted free webinars aimed to increase women’s participation in crypto – something I personally appreciate.

Is Luno Shariah-compliant? Is Luno Halal?

So, is Luno Shariah-compliant? Well the exchange itself is agnostic. As for the products – the cryptocurrencies – I will repeat what I wrote in the The ULTIMATE Cryptocurrency in Malaysia Guide article here:

The short answer is yes, if you don’t take excessive risks and acquire them through legal and ethical means. The long answer can be found at Securities Commission’s Digital Assets from Shariah Perspective page.

However, there are differing views. For example, the Indonesian Ulema Council deemed it haram.

It’s ok if crypto is not for you. Just do other investments, focusing on halal investing.

Do read the article because there is a section on calculating zakat on cryptocurrency savings.

Is Luno safe in Malaysia?

Now, the next part – is Luno safe in Malaysia?

Well, I think Luno is safe place to buy, sell and keep cryptocurrencies. They implemented a lot of security features.

However, please note that safety features doesn’t mean ‘confirm won’t lose money‘. That brings me to:

Luno Malaysia review: Common complaints

Common complaint #1 – Losing money

Luno Malaysia the company is regulated but (1) the value of your bitcoin will still go down during bear market, and (2) you can still get scammed and lose your crypto.

It’s the same idea as using banks – if you accidentally transferred funds to a scammer, or if your account got hacked, the bank is not responsible for the loss.

There is no 100% guarantee way to prevent losses, but you can significantly reduce the chances by:

• Implementing 2-factor authentication
• Implementing Biometric login
• Using strong passwords for your Luno login AND email address
• Using hardware wallet if you have a significant amount

You can read more about digital security and other security measures in the The ULTIMATE Cryptocurrency in Malaysia Guide article. You can also refer to Luno Blog section on Security for more tips.

Common complaint #2 – Not enough cryptocurrency options

Currently, the platform only offers 10 cryptocurrencies – a far cry from the hundreds/thousands of crypto assets options offered from popular (but unregulated) exchanges like Binance and KuCoin.

Aaron Tang, Country Manager of Luno Malaysia (you may also know him as mr-stingy.com) has said that the number one customer request is more crypto assets.

Even though in 2022 Aaron has assured that more coins will be offered later, it is unlikely that they will add hundreds or thousands of additional crypto assets. It is also unlikely that your favourite dog coin will be approved by Securities Commission and listed in Luno.

This is not a bad thing.

Rather than lack of options, think of it as Securities Commission doing the work to ‘vouch’ cryptocurrencies on our behalf. When they approve a crypto asset, they’re basically saying ok this one safe, not scam coin.

It also doesn’t matter if Luno Malaysia doesn’t offer that many cryptocurrencies. Once you get BTC/ETH/XRP, it’s not hard to exchange that to whatever crypto asset you want – it’s just a matter of learning how. So not having options in local exchanges is not that big of an issue tbh.

Personally, I choose to concentrate on mostly hodling BTC and ETH myself because they’re the safest options. For a longer version of that argument, read more in the Which Cryptocurrencies to Invest In? 3 Ways I Use to Decide article.

Common complaint #3 – No Luno staking or farming options

Sometimes I see people asking when Luno Malaysia will offer staking or farming options. They are both terms used in DeFi, or Decentralised Finance. In case you don’t know what it is:

• Staking is kinda sorta like fixed deposit where you earn by ‘locking’ your cryptocurrencies in exchange for profit
• Yield-farming is kinda sorta like earning from being a liquidity provider (a fancy term that basically means, you supply money for borrowers)

Now, two points that I want to make:

• First, Luno is a CENTRALISED company and regulated. Staking and farming are part of DeFi, which is DECENTRALISED finance and unregulated by nature. Therefore, Luno CANNOT offer staking or farming. It’s just fundamentally incompatible
• Second, *if* they do want to offer similar-but-not-quite-the-same-type of services, they’ll have to call it ‘crypto savings account’ or ‘interest-bearing account’ (instead of staking) and ‘lending platform’ (instead of yield-farming) or something

UPDATE – As of June 2023, Luno South Africa have offered ETH staking to its customers, which earns them 4% annually. Interesting how they kept the DeFi terms.

However it is unlikely for the same product to be offered to Malaysians anytime soon. I asked 🙁

Wow, Luno allows staking in South Africa. Wen Malaysia?

(Its not the same, but staking is like fixed deposit, kind of? You earn a % if 'lock' the funds within platform, good if not using it anyway – put it to work rather than leaving it dormant) pic.twitter.com/9KNgv36tN6

— Suraya: bestselling Bergaji & Pokai book (@surayaror) June 24, 2023

Final say: Don’t take regulated exchanges for granted

Perhaps some of you read this article wanting to know why you should use Luno or other regulated exchanges when unregulated ones offer more services and crypto assets. Just one reason: your safety.

I wish more people know how scary it was to invest in cryptocurrencies in the early days. It was very common to lose money. I’m oversimplifying, but it went more or less like this:

• Circa 2015-2017: Many exchangers and p2p platforms allowed Malaysians to buy and sell crypto, but not all of them are great with due diligence or security. A lot of people lost money when the exchanges got hacked or when they got scammed
• Circa 2018-2019: It got so bad that many local banks were not willing to work with crypto exchanges, making customer deposit/withdrawal difficult. Regulatory body Securities Commission started on the Digital Assets framework, aimed to increase customer protection
• Circa 2020 – now: About a dozen crypto exchanges applied for the licence but only some (including Luno) successfully met SC’s stringent requirements. Now, Malaysians can easily own (selected) digital assets

What I’m saying is, being a licensed exchange is a hard-won battle and the extra few ringgit paid is well worth your own security and protection, especially if you’re new to crypto. When you gain more experience and knowledge, then you can go nuts and explore the wild wild west side of it.

Last but not least, don’t forget to get that Bonus for new users. New users can get RM75 in BTC on minimum RM250 deposit (instant 30% ROI) with my code ‘7FA6G′.

Simply open a new account at Luno.com > Go to REWARDS > Choose ENTER CODE > Enter the given promo code > Click Apply Code > Deposit the minimum amount required > Buy the minimum transaction amount > Get rewarded with the additional Bitcoin.