VALR, a South African cryptocurrency exchange, has received new licenses from the Financial Sector Conduct Authority (FSCA), making it one of the first companies in the country to obtain both licenses. The licenses, known as Crypto Asset Service Provider (CASP) licenses, were granted in accordance with new regulations for the industry. VALR secured $55 million in equity funding from investors such as Pantera Capital and Coinbase Ventures. The exchange has been actively collaborating with regulators to establish a regulatory framework that promotes the growth of the cryptocurrency and blockchain sector while safeguarding investor interests. VALR co-founder and CEO Farzam Ehsani expressed that the licenses are a significant milestone for the exchange, emphasizing their commitment to compliance, security, and providing a reliable platform for the crypto community. The FSCA opened license applications in June 2023, and companies were given six months to apply. The licenses fall under the country’s Financial Advisory and Intermediary Services Act, with Category I licenses being the standard license required for a CASP, and Category II licenses enabling customers to provide a discretionary mandate to licensed providers. South Africa became the first African country to license cryptocurrency exchanges through regulatory frameworks. The FSCA approved 59 license applications from cryptocurrency platforms in March 2024, with a total of 355 applicants. In January 2023, the Advertising Regulatory Board in South Africa updated its requirements to address the growing popularity of cryptocurrency investing, aiming to protect consumers from unethical advertising practices.
VALR, an exchange based in South Africa, secures two licenses for crypto operations.