{"id":76127,"date":"2024-04-15T12:17:07","date_gmt":"2024-04-15T16:17:07","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=76127"},"modified":"2024-04-15T12:17:09","modified_gmt":"2024-04-15T16:17:09","slug":"valr-exchange-receives-dual-crypto-licenses-in-south-africa","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/valr-exchange-receives-dual-crypto-licenses-in-south-africa\/","title":{"rendered":"VALR Exchange Receives Dual Crypto Licenses in South Africa"},"content":{"rendered":"\n

The South African Financial Sector Conduct Authority (FSCA) has issued two new crypto asset service provider <\/a>(CASP) Licenses to crypto exchange VALR.<\/p>\n\n\n\n

\"VALR
VALR Exchange Receives Dual Crypto Licenses in South Africa<\/figcaption><\/figure>\n\n\n\n

The FSCA granted VALR Category I and II CASP licenses in addition to the $55 million in equity funding it received from Pantera Capital, Coinbase Ventures, and others. With the acquisition of both licenses, VALR becomes one of the pioneering cryptocurrency companies in the nation.<\/p>\n\n\n\n

In an interview with Cointelegraph, Farzam Ehsani, co-founder and CEO of VALR, described the exchange's acquisition of a CASP license from the FSCA as a major achievement.<\/p>\n\n\n\n

Collaboration between the organization and South African regulatory bodies has been ongoing to develop and execute a regulatory structure that protects investors while fostering the expansion of the cryptocurrency and blockchain industries<\/a>.<\/p>\n\n\n\n

“Our license demonstrates that we are committed to ensuring security, compliance, and a reliable platform for the cryptocurrency community.” “We applaud the regulators for undertaking this critical step on behalf of the nation and welcome this regulatory milestone for South Africa,” Ehsani stated.<\/p>\n\n\n\n

In June 2023, the FSCA commenced licensing, granting crypto asset service providers six months to submit license applications to adhere to South African regulations. Applying businesses were subject to regulation under the country's Financial Advisory and Intermediary Services Act \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>until November 2023.<\/p>\n\n\n\n

Additionally, Ehsani described the distinction between the two types of licenses. A CAT I license is the minimum financial service provider (FSP) license necessary for a CASP to offer advisory or exchange services to its clientele in South Africa.<\/p>\n\n\n\n

“A CAT II license, also known as a discretionary mandate license, permits clients to delegate authority to VALR and other authorized CAT II FSPs to structure their portfolios at their discretion. Ehsani stated that this permits VALR to investigate innovative product categories, including integrated offerings.<\/p>\n\n\n\n

The act aims to safeguard investors and customers while empowering regulators to enforce penalties for noncompliance. Commencing in 2021, South Africa became the inaugural African nation to grant official licenses to cryptocurrency exchanges via regulatory frameworks.<\/p>\n\n\n\n

In March 2024, the FSCA approved 59 license applications submitted by cryptocurrency platforms, as previously documented. As of the initial Reuters report, out of 355 applicants, the FSCA was evaluating 262 licensing applications from cryptocurrency exchanges.<\/p>\n\n\n\n

The Advertising Regulatory Board of South Africa revised its regulations in January 2023 in response to the increasing prevalence of cryptocurrency investment<\/a>. The purpose of the rule modifications was to safeguard consumers against unscrupulous advertising.<\/p>\n\n\n\n

A recent amendment to Section III of the advertising code mandates that South African entities, including corporations and individuals, adhere to specific advertising criteria when promoting cryptocurrency-related goods and services.<\/p>\n\n\n\n

It is required that advertisements, including those for cryptocurrencies, “expressly and clearly” state that capital loss is a possibility “due to the variable and potentially appreciating nature of the value.”<\/p>\n\n\n\n

Advertisements for specific services and products must be “easily understandable” to the target audience. Additionally, advertisements must convey balanced information regarding the returns, features, benefits, and risks of the advertised product or service. Additionally, social media influencers are required to comply with the revised regulations.<\/p>\n","protected":false},"excerpt":{"rendered":"

The South African Financial Sector Conduct Authority (FSCA) has issued two new crypto asset service provider (CASP) Licenses to crypto exchange VALR. The FSCA granted VALR Category I and II CASP licenses in addition to the $55 million in equity funding it received from Pantera Capital, Coinbase Ventures, and others. With the acquisition of both […]<\/p>\n","protected":false},"author":12,"featured_media":76136,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[15146,15120,938,19139],"class_list":["post-76127","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","tag-crypto-licenses","tag-fsca","tag-south-africa","tag-valr-exchange"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/04\/image-79.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/76127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=76127"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/76127\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/76136"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=76127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=76127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=76127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}