Zignaly

Read

Spot

VALR, a South African crypto exchange, has been awarded Category I as well as Category II licenses by the Financial Sector Conduct Authority (FSCA). 
This approval is a regulatory milestone for the Johannesburg-based company, which is among one of the first cryptos to get such dual-category licenses under the new cryptocurrency regulatory framework of South Africa. Moreover, it is considered to be a decisive measure for cryptocurrency being made part of the main financial activities within the country.
The development was welcomed by Farzam Ehsani, co-founder and CEO of VALR. He remarked that the FSCA’s decision was a sign of the exchange’s dedication to compliance, safety, and creating an efficient platform for trading cryptocurrencies. Valr has a trading volume that places it as the largest crypto asset exchange in <a href="https://coingape.com/south-africa-preps-to-join-the-stablecoin-race-with-the-presidential-elections-this-year/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">South Africa</a> having over 1,000 corporate and institutional clients and more than half a million traders worldwide.
<h2 id="details-of-the-new-valr-licensing-framework">Details of the New VALR Licensing Framework</h2>
The licensing was awarded as part of a move by South African authorities to control and monitor the cryptocurrency industry more strictly, just four days after the <a href="https://coingape.com/south-africa-financial-regulator-begins-issuing-crypto-licenses/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">Luno </a>and Zignaly licenses. The legislation under which these licenses were allowed, the Financial Advisory and Intermediary Services (FAIS) Act, is specifically aimed at protecting consumers and investors by setting transparent standards and requirements for the providers of financial services in the crypto space.
Category I license enables VALR to offer simple advisory and intermediary services to customers, which include facilitating the trading of cryptos and providing investment advice. A thorough Category II license grants the company to exercise discretion in the customer portfolios, thus to provide custom investment solutions and managing the assets on the behalf of clients.
<h2 id="enhanced-consumer-protection">Enhanced Consumer Protection</h2>
These licenses are a component of the strategic efforts of South Africa to ensure a safer and more regulated environment for cryptocurrency investors and users. The FSCA seeks to protect the market from potential abuses and create a more favorable trust environment among participants through the formalization of the operations of crypto asset service providers.&nbsp;
The regulations are also aimed at controlling criminal activities such as money laundering and terrorism financing, both of which are a challenge in a predominantly unregulated crypto market on a global scale.
Furthermore, in January 2023, the country’s <a href="https://coingape.com/asci-tightens-guidelines-for-finfluencers-and-sets-stage-crypto-influencers-awaits-impact/" rel="noopener noreferrer nofollow">Advertising Regulatory Board</a> revised its rules to include tighter guidelines on cryptocurrency advertisements. These regulations help in making sure that the advertisements are clear and honest while they give a balanced view of the potential risks and returns. This step is aimed at eliminating additional misleading information for consumers and supporting ethical marketing standards in the booming crypto industry.
Read Also: <a href="https://coingape.com/osl-becomes-sub-custodian-of-chinaamcs-spot-btc-eth-etf-in-hong-kong/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">OSL Becomes Sub-Custodian of ChinaAMC’s Spot BTC/ETH ETF in Hong Kong</a>
The post <a href="https://coingape.com/crypto-exchange-valr-receives-regulatory-nod-in-south-africa/" rel="noopener noreferrer nofollow">Crypto Exchange VALR Receives Regulatory Nod in South Africa</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Crypto Exchange VALR Receives Regulatory Nod in South Africa

Table of Contents

Coingape News Media

Другие статьи, опубликованные 15 апр. 2024 г.

Emerging Cyber Risks for Cryptocurrency Holders and Apple Product Users

Top 5 Gainers Of The Past Week: PUPS, GOG, BFIC, ONG, BMX

UK Invests in Mobile Facial Recognition Units to Combat Crime in Shopping Areas

Most Innovative Cryptos: Algotech (ALGT) Outshines SAGA and XRP With AI Features as Presale Nears...

LUNC Price Analysis: Is Terra Classic Eyeing $0.0002 On Overcoming $0.0001 Hurdle?

With Fezoo’s Value on the Rise, Stacks & Mantle Communities are Keen to Join, Eyeing 800% Growth

Join our free newsletter for daily crypto updates!