South Africa grants crypto licences to Luno, VALR and 73 others

STARTUP VENTURE CAPITALApril 28, 2024 at 10:23 AM UTC

TLDR

VALR obtains regulatory approval from South African FSCA for Category I and II designations, joining Luno and Zignaly.
FSCA grants operating licenses to 59 crypto firms out of 355 applications, with 262 still under vetting.
Luno approved as a financial service provider by the FSCA.

VALR has recently announced regulatory approval from the South African Financial Services Conduct Authority (FSCA), joining Luno and Zignaly in receiving approval.

VALR's approval includes both Category I and II designations. Zignaly has received a Category II approval, while Luno obtained approval as a financial service provider.

This development follows the FSCA's announcement in March that it would grant operating licenses to 59 crypto firms out of 355 applications received, with 262 still undergoing vetting.

Key Takeaways

The approval of operating licenses for cryptocurrency firms in South Africa marks another step in the country's ongoing efforts to relax its regulatory stance on cryptocurrencies. This move follows earlier initiatives to modernize the regulatory framework surrounding digital assets. In November 2018, the South African Reserve Bank (SARB), in collaboration with the FSCA, the South African Revenue Services (SARS), and the Financial Intelligence Centre (FIC), established the Crypto Assets Regulatory Working Group. This group assessed the regulatory landscape for cryptocurrencies in South Africa. Subsequently, in July 2021, the working group published a paper outlining recommendations for updating South Africa's policy, legal, and regulatory approach to crypto assets. Then, in August 2022, the SARB issued guidelines providing clarity on how financial institutions, including banks, could engage with crypto clients.

VALR

FSCA

Luno

Zignaly

Cryptocurrency

South Africa

Digital Assets