Luno relaunched again in Kenya after 10 years of absent from the Kenyan crypto market. The UK-based crypto company, currently working in South Africa and Nigeria, exit the Kenyan market in 2014 due to challenges in achieving sustainable growth and inability to navigate the regulatory environment during that time.
Now, the crypto exchange has relaunched in the East Africa country with a full suite of crypto trading services designed for both individual investors and institutional traders. Luno was once functioning as a hybrid crypto platform, but now, the platform has transformed into a dedicated crypto exchange platform to serve more experienced crypto users.
Hybrid crypto platform means combining features of a traditional crypto exchange that allows users to buy, sell, and trade digital assets like BTC, ETH, USDT, with additional services like crypto wallet storage, or simplified app interfaces for beginners.
Companies offering hybrid crypto services target both novice and advanced users by offering versatility. However, Luno’s change to a full suite of crypto trading services are to focus on providing robust trading tools and features that best suits sophisticated investors and traders. To be precise, platform like Binance.
When Luno first launched services in Kenya in 2013, it was operating as BitX in the country's crypto market. However, the crypto exchange rebranded to Luno in 2017 to focus more on expansion and company's recognition worldwide. BitX operated in Kenya from 2013 to 2014, one year before it quit operation.
The Luno's comeback into Kenya aligns with the country’s growing demand for digital assets and ongoing efforts to finalize a comprehensive crypto regulatory framework. Luno’s return introduces a secure, and compliant platform for Kenyans to buy, sell, and store cryptocurrencies and other digital assets with zero-commission trading and support for Kenyan Shilling pairs.
In other words, Kenyan crypto users can now trade with the Kenyan Shilling (KES) on pairs like BTC/KES, ETH/KES, USDT/KES, and USDC/KES, as well as global pairs like BTC/USDT. The platform facilitates local transactions and arbitrage opportunities. Additionally, Luno provides incentives for users who refer new traders and maintain active accounts.
The relaunch comes as Kenya’s Virtual Asset Service Providers (VASP) Bill 2025 aims to regulate crypto exchanges, stablecoins, and digital wallets, that'll help build a safer market environment. However, Luno is reportedly collaborating with regulators to support responsible crypto growth, and back its relaunch.
Why Luno Exit Kenyan Market in 2014
Luno, operating as BitX then, exited the Kenyan crypto market in 2014 due to the underdeveloped crypto market, which struggled with low user adoption and limited infrastructure for digital asset trading.
The company faced challenges in building sustainable operations, including difficulties integrating with local financial systems and forming strong partnerships with major financial companies that'll simplify the crypto payment processes.
In addition to that, Kenya’s lack of transparent crypto regulations during that time created uncertainty that makes it risky to operate compliantly. This is why BitX chose to focus on more mature and profitable markets like South Africa and Nigeria, where conditions were more favorable for growth.
Now, Kenya is exploring some regulations directive that'll be used to govern its crypto sector. The country's parliament is examining the Virtual Asset Service Providers (VASP) Bill, 2025, which would mandates crypto companies to register with the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK).
In addition to that, the bill mandates that crypto companies must comply with consumer protection standards which are in place to safeguard users from fraud and unfair practices.
The bill also guides many crypto activities and assets, including stablecoins (digital currencies pegged to US dollar), digital wallets, platforms, apps and exchanges, and token offerings which means issuing new cryptocurrencies.
All these rules are to ensure all these operations, performed by crypto exchanges and platforms, meet regulatory standards which are aimed at boosting a secure and transparent crypto market in Kenya. What do you think about the Luno relaunch in Kenya? Is it a good idea or a bad one? Let's know your opinions in the comments section.
