VALR, the largest South African crypto exchange by trading volume, has been granted both a Category I and Category II license by the Financial Sector Conduct Authority (FSCA) of South Africa as a Crypto Asset Service Provider (CASP).
Established in 2018, VALR is a digital asset platform that allows customers to buy, sell, store and transfer Bitcoin and 60 other cryptocurrencies – the widest selection of any platform in Africa – seamlessly and securely. It serves over 1,000 corporate and institutional clients and more than half a million traders worldwide.
The company, which raised a US$50 million Series B funding round in March 2022, recently obtained approval to offer crypto services in Europe, and also obtained a license in Dubai. It has now been licensed as a CASP by the FSCA, making it one of the first crypto asset platforms to receive regulatory approval in both categories in South Africa.
The FSCA opened CASP license applications in June 2023, giving crypto asset providers six months within which to apply for a license to be compliant with South African regulations. The South African regulatory authority has established a regulatory framework for CASPs, a sector encompassing crypto asset exchanges, wallet providers, custodians and other providers of financial services in respect of crypto assets. By licensing and regulating these entities, the country aims to foster trust, protect investors and consumers, and promote sustainable growth within the crypto industry.
“Obtaining the CASP license from the FSCA is a monumental achievement for VALR. Over the past six years, we have actively collaborated with the South African regulators who have now pioneered a regulatory regime, allowing innovation to flourish while protecting the public interest. Our license underscores our unwavering dedication to compliance, security, and providing a trustworthy platform for the crypto community. We welcome this regulatory milestone for South Africa and applaud the regulators for taking this important step for the nation,” said Farzam Ehsani, co-founder and CEO of VALR.
