VALR cryptocurrency exchange has made a strong presence in South Africa. But as a South African investor, you may be wondering; is VALR legit?
This article’ll examine VALR’s credentials and licensing to determine whether it is a trustworthy exchange for South African users or a scam.
Is VALR Legit?
The short answer is yes, VALR is a fully legitimate and regulated cryptocurrency exchange in South Africa. In fact, VALR is one of the first crypto companies in the country to be granted both the Category I and Category II CASP (Crypto Asset Service Provider) licenses by the Financial Sector Conduct Authority (FSCA).
The Category I license is the standard financial services provider (FSP) license required for any CASP operating in South Africa. This demonstrates that VALR has met all the necessary legal and operational requirements to offer crypto trading and advisory services to customers.
But VALR has gone a step further by also securing the more specialized Category II license. This discretionary mandate license allows VALR to have more flexibility in structuring innovative investment products for customers, further showcasing its capabilities as a sophisticated, regulated crypto platform.
The fact that VALR has obtained these robust regulatory approvals from the FSCA is a strong indicator of its legitimacy.
As a regulated platform, VALR is required to adhere to strict KYC (know-your-customer) and AML (anti-money laundering) policies. This gives South African users the assurance that VALR is operating in a secure and compliant manner, with measures in place to prevent illicit activity on the platform.
Now that’ve the platform is legal, you can learn more by reading our complete VALR review.
Security and User Protections
When it comes to the safety of your crypto assets, VALR takes security extremely seriously. The exchange uses industry-leading practices to protect both your funds and your personal information.
First and foremost, VALR stores the vast majority of its cryptocurrency holdings in cold storage. This means the coins are kept offline in secure, physical locations, making them virtually impenetrable to hackers. It’s a highly effective measure to protect against the risk of cyber theft.
What is more, VALR mandates that all users enable two-factor authentication before they can access their accounts. This extra layer of security requires you to provide a one-time code, typically sent to your mobile phone, whenever you log in. This makes it exponentially harder for anyone other than you to gain unauthorized access.
But VALR doesn’t stop there. The exchange also maintains comprehensive insurance coverage in the highly unlikely event of a breach or theft of customer funds. This provides an additional safety net, giving you that much more confidence in the security of your crypto assets when trading on the platform.
Financial Backing and Partnerships
It might also interest you to know that VALR has some serious financial muscle behind it. The exchange has secured a massive $55 million in equity funding from big-name investors like Pantera Capital and Coinbase Ventures.
These are two of the most respected names in the crypto space, so the fact that they’ve poured millions into VALR is a huge vote of confidence. It also shows that VALR has the financial resources and backing of industry heavyweights.
So when you see VALR’s connections to these well-known brands, it’s clear that this isn’t some scam platform, but a crypto exchange that’s here to stay.
User Reviews from Trustpilot
In addition to VALR’s strong financial backing and reputable partnerships, the platform has also earned praise from its actual users in South Africa.
On Trustpilot, VALR boasts an impressive 2.8 out of 5-star rating based on over 1,000 reviews. One satisfied customer, Marc Capes, raved, “VALR is a really good service. I am using their services for more than 3 years now and never had any issues.”
Another reviewer, Roelene Phillips, initially thought VALR was a “scammer” when her withdrawal was temporarily held, but she was impressed by the platform’s support team who “remained cool and calm” and transparently explained the security measures in place to protect users’ assets. Roelene concluded, “Trust and transparency is clearly a priority for them and I commend you VALR. The problem was solved in due time.”
Testimonials like these from real South African users prove that VALR is a legitimate and trustworthy exchange that delivers a great experience.
Verdict: Should South Africans Use VALR?
After reviewing all the evidence, it’s clear that VALR is a highly legitimate and trustworthy cryptocurrency exchange. They’ve got the regulatory stamp of approval from the FSCA, strong financial backing from industry heavyweights, and positive reviews from real customers. VALR has proven itself to be a secure and compliant platform that puts the needs of its users first.
As a locally regulated exchange, VALR is specifically designed to cater to the South African market. You can be confident that your crypto assets are in safe hands and that you’re trading on a platform that understands the unique needs and requirements of South Africans.
Plus, VALR offers competitive fees, tight spreads, and a wide range of cryptocurrency trading pairs – making it an attractive option for both beginner and experienced traders.
So if you’re looking to get into crypto or switch to a more reliable exchange, I highly recommend giving VALR a try. It’s a platform you can trust to protect your investments and provide a seamless trading experience.
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FAQs
- 1. Is VALR Legit?
Yes, VALR is a fully legitimate cryptocurrency exchange and has obtained both the Category I and Category II CASP licenses from the South African financial authorities the FSCA.
- Who Is VALR CEO?
VALR’s CEO and co-founder is Farzam Ehsani. Ehsani is an experienced financial professional with a background in blockchain technology and cryptocurrency. He previously served as the blockchain lead at one of South Africa’s largest banks, FNB, before co-founding VALR in 2019.
- Is VALR Safe?
While VALR does not provide explicit insurance coverage, the platform has robust security measures and risk management protocols in place to protect user funds. This includes cold storage for the majority of digital assets, multi-factor authentication, and regular security audits.
- How Long has VALR been Operating?
VALR was launched in 2019 and has been steadily growing its user base and services over the past few years. The platform’s regulatory approvals and substantial funding from respected investors demonstrate its long-term commitment to the South African crypto market.
- Is VALR Available Worldwide?
While VALR is primarily focused on serving the South African market, the platform is accessible to users globally. However, certain features and services may be restricted for non-South African residents to comply with local regulations.