VALR Wins Dual Crypto Licenses
VALR, a cryptocurrency exchange based in South Africa, has recently obtained new licenses from the Financial Sector Conduct Authority (FSCA) in compliance with the country’s new regulations for crypto asset service providers. This makes VALR one of the first companies in the country to receive both Category I and Category II CASP licenses. The company has been collaborating closely with South African regulators to establish a regulatory framework that promotes the growth of the cryptocurrency market while ensuring the protection of investors. VALR’s co-founder and CEO, Farzam Ehsani, believes that obtaining these licenses is a significant achievement for the exchange, emphasizing their commitment to compliance, security, and providing a reliable platform for the crypto community.
The FSCA started accepting license applications in June 2023, giving crypto asset service providers a six-month window to apply for compliance with South African regulations. Companies were required to apply by November 2023 and would be regulated under the country’s Financial Advisory and Intermediary Services Act. Ehsani explains that a Category I license is the standard license required for a CASP to offer advisory or exchange services to customers, while a Category II license, known as a discretionary mandate license, allows customers to authorize VALR and other licensed providers to make investment decisions on their behalf. This opens up opportunities for VALR to introduce new product offerings.
South Africa has become the first African country to license cryptocurrency exchanges through regulatory frameworks established since 2021. In March 2024, the FSCA approved 59 license applications from cryptocurrency platforms, and at that time, it was still processing an additional 262 applications out of 355 total applicants. In January 2023, the Advertising Regulatory Board of South Africa updated its requirements to address the growing popularity of cryptocurrency investing. The changes were meant to protect consumers from misleading advertising. Advertisements related to cryptocurrency must now clearly state the potential loss of capital and provide easily understandable information about the associated risks and benefits. Social media influencers must also comply with these updated rules.
The granting of CASP licenses to VALR is seen as a significant step for the South African cryptocurrency industry, signaling the country’s commitment to establishing a regulatory environment that fosters growth and provides investor protection. The licenses allow VALR to operate as a fully compliant service provider and explore new opportunities in the market.
5 thoughts on “VALR Wins Dual Crypto Licenses”
Leave a Reply
You must be logged in to post a comment.
These licenses are just a facade to give the illusion of investor protection.
South Africa’s regulatory strides in the cryptocurrency industry are incredibly promising. These licenses for VALR are a testament to the country’s dedication to fostering growth and implementing effective regulations.
Wow, this is fantastic news for VALR! Obtaining Category I and II licenses from the FSCA is a huge accomplishment! This shows their dedication to compliance, security, and creating a reliable platform for the crypto community.
South Africa may be the first, but it’s only a matter of time before other African countries catch up.
The approval of 59 license applications from cryptocurrency platforms is a major milestone that showcases South Africa’s determination to regulate and legitimize the industry. A bright future awaits!