A Milestone Achievement: VALR Granted Dual Crypto License in South Africa
VALR, a cryptocurrency trading platform valued at $240 million, has officially obtained Category I and II crypto asset service provider (CASP) licenses for crypto assets in South Africa.
Today is a great day for @VALRdotcom
Just over 6 years ago, VALR was a figment of the imagination.
Today we stand as a licensed & authorised Financial Service Provider (FSP) with a CAT I and II license for crypto assets in South Africa.
Thank you for your love and support ❤️🙏
— Farzam Ehsani (@farzamehsani) April 15, 2024">
Farzam Ehsani, the co-founder and chief executive officer of Pantera-backed VALR, announced on Monday that it has received both licenses that serve as regulatory approval from the South African Financial Services Conduct Authority (FSCA). This is following new requirements for industry firms as announced by Africa's most industrialized economy.
In 2022, the FSCA declared that crypto assets need to be regulated in order to protect financial customers from risks and prevent money laundering and terrorism financing. This also gave the central bank's Financial Surveillance Department the power to instruct South African cryptocurrency exchange firms to report transactions involving cryptocurrencies.
Applications for the FSCA license began to roll out in June 2023, with six months given to crypto asset service providers to apply. The deadline for applications was fixed for November 31, 2023.
Earlier in March 2024, Felicity Mabaso, a divisional executive at the FSCA, stated that the South African authority was in the process of reviewing and granting applications sent by crypto asset trading platforms.
The CAT I license is the standard financial service provider (FSP) license in South Africa, created for all crypto asset service providers offering advice or exchange as a service to customers.
While the CAT II license, also known as the discretionary mandate license, enables customers to give FSPs in this category a mandate to use their discretion to structure the customer’s portfolio.
Securing a CAT I and II license from the FSCA is expected to foster the growth of the cryptocurrency and blockchain sectors while ensuring investor protection. The license ensures that exchange platforms provide a trustworthy platform for the crypto community in South Africa.
VALR supports up to 500,000 traders worldwide and boasts a portfolio that includes more than 1000 institutional and cooperative clients. This milestone achievement benefits the cryptocurrency industry and South Africans. The act ensures compliance, safety, and security for customers.
This also makes South Africa officially the first African country to formally license cryptocurrency exchanges through regulatory frameworks.
The following exchange platforms, VALR, Luno and crypto social investment platform Zignaly, are among the first batch of crypto firms to obtain approvals from South Africa's Financial Sector Conduct Authority (FSCA).
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