South African Authorities Grant Crypto Licences to VALR, Luno, and Zignaly

In South Africa, VALR, a cryptocurrency exchange, has received regulatory approval from the South African Financial Services Conduct Authority (FSCA). 

This approval coincides with similar announcements from Luno, a cryptocurrency asset service provider, and Zignaly, a decentralised social investing marketplace.

VALR secured a Category I and II approval, while Zignaly received a Category II for Discretionary Financial Services, and Luno attained approval as a financial service provider.

This approval follows the FSCA’s recent announcement indicating its intention to grant operating licences to 59 crypto firms, with hundreds more undergoing review. VALR, in particular, highlights its extensive global user base and substantial valuation post a significant funding round led by Pantera in 2022.

Farzam Ehsani, VALR’s CEO, lauds this regulatory milestone, acknowledging it as a significant achievement for the company and commending the proactive stance of regulators.

The distinctions between Category I and II licences are elucidated by VALR’s CEO, who underscores that Category I is the standard licence for offering financial services in South Africa, while Category II grants firms the authority to exercise discretion in portfolio management, enabling innovative product offerings.

Luno, a seasoned player in the cryptocurrency space, celebrates its decade-long presence as South Africa’s premier licensed crypto asset service provider. Christo de Wit, Luno’s South Africa Country Manager, emphasises the company’s commitment to compliance and customer safety, alongside plans to expand its service offerings and enhance security measures through monthly proof-of-reserves reports.

Meanwhile, Zignaly, rebranded as Merritt Administrators, views its Category II licence as a significant milestone akin to licences held by established investment institutions. 

The company anticipates leveraging this licence to navigate potential regulatory shifts in decentralised finance (DeFi) and offer expanded investment services.