VALR Blockchain Company Receives First CASP Licenses in South Africa
Summary:
South African cryptocurrency exchange, VALR, has obtained Category I and II crypto asset service provider (CASP) licenses from the Financial Sector Conduct Authority (FSCA), making it one of the pioneer crypto firms in the country to achieve both licenses. The platform, funded by organizations such as Pantera Capital and Coinbase Ventures, acclaimed that the licenses highlight its persistent commitment to compliance, security, and investor protection. CEO Farzam Ehsani explained the different categories of licenses and applauded regulatory milestones in the country's crypto and blockchain sector.
VALR, a prominent cryptocurrency exchange in South Africa, has achieved compliance with new rules set out by the country's financial regulator, Financial Sector Conduct Authority (FSCA). The platform, which previously amassed $55 million in funding from Pantera Capital, Coinbase Ventures, among others, has successfully obtained Category I and II crypto asset service provider (CASP) licenses. This makes it one of the first crypto firms in South Africa to achieve such a feat. VALR's CEO, Farzam Ehsani, said that attaining the CASP licensing is a crucial milestone for the platform, highlighting their commitment to investor protection while maneuvering the evolving crypto and blockchain sector. FSCA initiated the application process for licenses in June 2023, giving crypto firms six months to apply and align with local regulations. Companies had until November 2023 to submit their application and will adhere to the country's Financial Advisory and Intermediary Services Act. Ehsani also provided insight into the two license categories—while a CAT I license permits a South African CASP to offer advice or facilitate exchanges for customers, a CAT II license empowers firms to devise individualized investor portfolios. South Africa made history by being the first African nation to license crypto platforms officially and has worked on the regulatory framework since 2021. In March 2024, the FSCA granted 59 licensing applications from crypto firms and continued to review more requests from a pool of 355 applicants. With the burgeoning popularity of crypto investments, South Africa's Advertising Regulatory Board updated its regulations in January 2023, mandating stricter advertising standards that shield consumers from deceptive promotional content. The revised rules, which also apply to social media influencers, demand absolute clarity regarding the volatile nature of crypto investments and risks associated with each product or service.
Published At
4/15/2024 5:00:00 PM
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