Cryptocurrency has exploded in popularity around the world over the last few years. Riding this wave in South Africa is Luno, a leading platform that enables users to easily buy, sell, and store major cryptocurrencies like Bitcoin and Ethereum.
With over 7 million customers spanning 40 countries, Luno has quickly become one of the most widely-used crypto onramps globally. However, as cryptocurrency is still a developing industry, there are understandable questions in South Africa around how legit and trustworthy platforms like Luno really are.
Can South Africans truly rely on Luno? Is the platform legal, safe, and reliable to use? Do they charge reasonable fees and responsibly secure user funds? These are all key aspects we need to dive into when evaluating the legitimacy of Luno for South African crypto traders and investors.
Is Luno Legal in South Africa?
When evaluating any cryptocurrency platform, the first question that should come to mind is – is this platform actually legal for me to use in my country?
The good news is Luno is fully approved to operate in South Africa. For starters, they are registered with the Financial Intelligence Centre (FIC) under the registration number AI/130605/00024. This already indicates legitimacy.
Additionally, Luno is registered locally under the company name Luno Proprietary Limited, with the registration number 2013/075107/07. They have approval from the South African Financial Sector Conduct Authority (FSCA) to provide cryptocurrency services in the country.
Given these multiple layers of registration and licensing at both the financial regulatory level and as an incorporated business entity, South African users can feel confident Luno is operating legally within the rules and standards set by local authorities. This legitimacy brings a level of safety and recourse when using the platform.
Is Luno Safe to Use in South Africa?
Now that we’ve established Luno is legal in South Africa, the next key question becomes: is it safe for South Africans to trust using Luno? Can our funds and crypto be securely stored?
When it comes to safety, Luno checks all the right boxes. The platform enables users to set up two-factor authentication, adding an extra layer of account security beyond just a password. They also utilize encryption to protect personal data, and provide the option to store crypto holdings in offline storage or “cold wallets” to mitigate online hacking risks.
These safety standards match or even exceed what traditional banks provide. Features like two-factor authentication and data encryption are still uncommon among many South African banks, showing Luno is up-to-date or even ahead of the curve when it comes to prioritizing user security in the market.
Just as our cash holdings feel secure in a bank’s vault, Luno has implemented the analogs protection measures to give South Africans confidence their digital assets and data are safely secured. This gives users peace of mind against compromise as they explore cryptocurrency investing.
Luno Fees for South Africans
As we determine whether Luno is a legit platform for South Africans, an important consideration is how much it costs to use it. When it comes to affordability, Luno offers a competitive fee structure tailored for South African users including:
- Deposit fees: Cash Deposits are charged at R20 + 5%, EFT bank transfers are free, while Instant EFT transfers cost 1.40%.
- Trading fees: Buying and selling crypto with the Luno wallet incurs a flat 2% fee, while crypto bundles cost 1% for trades and 2% as an annual tracking fee.
- Instant buy fees: Using a debit/credit card to instantly purchase crypto fees 3.90%
These deposit, trade, and purchase charges are in line with or below global industry averages – indicating Luno aims to maximize cost-effectiveness and accessibility for South Africans to enter the crypto market. Their transparent fee model is competitively priced for the unique local financial landscape.
Read also! How to Make Money with Luno in South Africa – 5 Proven Methods
Luno Funds Protection for South Africans
Beyond just technical security features, an urgent question for South Africans is does Luno provide insurance and protections for user money & crypto?
The answer is yes – Luno stores and insures up to 95% of customer funds held online or hot wallets. They work with leading insurance providers like Marsh and Arch Insurance to guarantee coverage. This covers the risk of theft or hacks, giving South Africans strong peace of mind.
For even greater reassurance, Luno’s proprietary cold storage system secures & isolates the remaining 5% of funds away from any online risk. This “deep freeze” method protects assets even in an extreme scenario where hot wallets are compromised.
Between cutting-edge insurance coverage, cold storage protections, and data encryption, South African users can feel confident entrusting Luno with both local currency & digital asset deposits knowing they responsibly secure funds and mitigate loss risks. That trust is invaluable for utilizing any finances platform.
Reviews of Luno from South African users
The true test for any platform is whether real customers are satisfied using it. Checking Luno reviews from South Africans provides that validation.
On the Apple App and Google Play stores, Luno scores a shining 4.7 stars based on over 44,000 reviews – making it the top ranked crypto app in South Africa. The main praise highlights ease of use, fast transfers, responsive support, and reasonable fees.
On consumer sites like HelloPeter, SA users compliment Luno’s “seamless” mobile trading but note withdrawals occasionally take over 24 hours in rare cases. Yet the vast majority rate Luno as “excellent” for crypto newcomers.
Across crypto review sites, South African trader sentiment also skews positive, though some caution larger volume traders may still prefer exchanges with more advanced analysis tools. However, recreational investors overwhelmingly approve Luno as a top choice for conveniently accessing crypto markets.
By listening closely to this customer feedback, both highs and lows, Luno looks legitimized as a trusted starting point for South Africans to adopt cryptocurrency safely. And the platform continues improving to address any shortcomings raised by locals requiring more complex features over time.
Read also! Luno vs VALR
Verdict
When weighing whether a cryptocurrency platform like Luno is legit for South African users, we have to examine their legal legitimacy, safety measures, fee structure, and real customer experiences.
As covered in this analysis, Luno checks all the right boxes across the board – they are fully legally registered to operate in South Africa with both FIC and FSCA approval. They utilize encryption, cold storage protections, and insurance coverage to secure user funds responsibly. Their pricing model makes crypto affordable and accessible for SA investors compared to global industry averages. And predominantly positive user reviews validate Luno as an easy, convenient platform for cryptocurrency adoption.
While there is always room for a rapidly evolving company like Luno to improve, and more advanced traders may desire added features, they have earned public trust as a legit springboard for South Africans to enter the crypto space safely. For those curious to explore digital assets, Luno remains a recommended choice for getting started.
Their commitment to legal compliance, safety protections, fair pricing and responsive customer service makes Luno a leading crypto onramp uniquely tailored for South Africa today and into the future.
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FAQs
- Is Luno legit in South Africa if I want to start trading crypto?
Yes, Luno is considered very legit in South Africa especially if you just want basic Bitcoin buying and selling. They have registration with the Financial Intelligence Centre (FIC) thus making them a legit and compliant choice for South Africans looking to trade cryptocurrencies.
- Is it safe for South Africans to store crypto on Luno?
Yes, Luno utilizes encryption protocols, cold storage systems, and insurance coverage through major providers to keep South African user funds secure. They insure up to 95% of crypto stored on their platform, mitigating risk of loss for customers.
- Does Luno have reasonable fees for South Africans buying and trading crypto?
Yes, Luno strives to make their fee structure affordable especially for price-sensitive South African markets. Their trading fees often beat global industry averages while providing zero fees on crypto deposits or withdrawals. These costs stay reasonable even at higher trade volumes.
- Can everyday South Africans easily use the Luno platform?
Yes, simplicity and beginner-friendly experience are defining traits of Luno designed intentionally for major adoption across Africa. Their average 4.7 star mobile app rating confirms South Africans find Luno intuitive to begin trading crypto seamlessly even as newcomers.
- Are there any major downsides to Luno for more advanced South African traders?
Luno focuses strongly on novice friendly crypto adoption, so extremely active South African traders may eventually seek platforms with more intricate analysis tools or asset offerings. Yet Luno’s core value proposition around secure, legal, affordable crypto makes them highly legit for nearly all mainstream South African investors and traders levels.