South African Crypto Exchange VALR Gets Regulatory Green Light
South African-based cryptocurrency exchange VALR has recently gotten the nod to continue its crypto business. This follows after the firm secured Category I and Category II licenses from the South African Financial Sector Conduct Authority (FSCA). The licenses mean that VALR is now authorized to deal as a crypto asset service provider (CASP) in the country, marking a significant milestone for the platform and the local crypto industry. FSCA Approves VALR amid Evolving Regulatory Clarity By securing the FSCA license, VALR joins crypto exchange Luno and crypto social investment platform Zignaly as one of the first batch of beneficiaries of South Africa’s new regulatory regime. Recall that the FSCA, South Africa’s financial watchdog, opened applications for its license in 2023. That was after South Africa approved a legislation that sought to include crypto oversight as its duty. As of March 12, Reuters reported that the FSCA had approved 59 license applications. The license allows VALR or any other firm that meets all laid-down requirements to operate as a fully regulated cryptocurrency exchange in the country. It might be noteworthy, however, that the approval comes amid increasing regulatory efforts in the crypto space globally. South Africa has always shown a mixed approach to cryptocurrencies and may just be evolving with regulatory clarity. For context, the government has repeatedly expressed interest in blockchain technology and its potential benefits. The same government has raised concerns bordering on money laundering, terrorism funding, and other risks that are crypto-related. By granting crypto licenses to VALR and others, South Africa appears to have taken a positive step towards regulatory clarity. This is not only beneficial for the country but also for the legitimacy of crypto exchanges operating in South Africa. Overall, the move is expected to boost investor confidence and foster further innovation in the local crypto industry. VALR was founded in 2018 by Farzam Ehsani and Badi Sudhakaran. As of March 2022, the Pantera-backed company had seen its valuation hit $240 million.
