Is VALR Legal in South Africa? Is VALR Safe?
Choosing a trustworthy cryptocurrency exchange is crucial as it directly impacts the safety and security of your digital assets. The high risk of scams in this area necessitates extreme caution from users.
Our analysts have noticed a growing interest in VALR services among users in the South Africa. However, questions remain regarding its safety and legal status within the South Africa. Traders Union experts have addressed this concern by crafting a detailed review that explores both the pros and cons of using VALR.
So, let us tell you if VALR is allowed in the South Africa and if it's safe to use for trading.
Is VALR legal in South Africa? Does it have a license?
VALR is a regulated exchange that provides services in most countries worldwide, except for those under international sanctions, such as North Korea, Iran, Syria, Cuba, and regions like Crimea, Donetsk, and Luhansk. Restrictions may also apply based on requests from local regulators. We compared VALR's level of regulation with the top two global competitors and the top two competitors available in your country. Exchanges with Tier-1 regulation are generally considered the safest. However, VALR's safety level is also influenced by other factors outlined below.
| VALR | Binance | Bybit | |
|---|---|---|---|
Government-regulated |
Yes |
Yes |
Yes |
Tier-1 regulation |
No |
Yes |
Yes |
U.S regulation |
No |
No |
No |
FCA U.K |
No |
No |
No |
AUSTRAC in Australia |
No |
Yes |
No |
DFSA in UAE |
No |
No |
No |
AMF in France |
No |
Yes |
No |
Spain |
No |
Yes |
No |
Germany |
No |
No |
No |
Singapore |
No |
No |
No |
MFSA in Malta |
No |
No |
No |
Seychelles |
No |
No |
Yes |
Other countries |
South Africa |
OAM (Italy), FIU (Lithuania), Swedish Financial Supervisory Authority, Bank of Spain, AFSA (Kazakhstan), CASP (Bahrain), VARA (Dubai), FIU-IND (India), Bappebti (Indonesia), JFSA (Japan), FSP (New Zealand), Securities and Exchange Commission of Thailand, DASP (El Salvador), CNV (Argentina) |
Austria’s Financial Market Authority (FMA), Georgia, Kazakhstan |
Open an account |
|
|
Other VALR Security Factors to Consider
| VALR | Binance | Bybit | |
|---|---|---|---|
2FA |
Yes |
Yes |
Yes |
Verification (KYC) |
Yes |
Yes |
Yes |
Successful hacks |
No |
Yes |
Yes |
Cold wallet storage |
Yes |
Yes |
Yes |
Investor protection fund |
Yes |
Yes |
Yes |
Open an account |
|
|
Short summary about the VALR exchange
The VALR exchange is a renowned cryptocurrency trading platform. Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, and other cryptocurrencies are at your disposal for trading here. Instantaneous exchange and margin trading are available (but no leverage). Of the fiat funds, only the South African rand is represented. The crypto exchange has a web version of the trading terminal and applications for iOS and Android for mobile trading. The site offers a referral program with four levels of reward. Traders' assets are stored in the Bittrex system, and the platform uses several levels of security to protect users' funds. Fees are fixed and are below the market average.
| 💰 Account currency: | Cryptos, currencies |
| 🚀 Minimum deposit: | $1 |
| ⚖️ Leverage: | 1:1 |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptos, ZAR |
| 💹 Margin Call / Stop Out: | No |
VALR Pros and Cons
👍 VALR Pros:
•a plethora of cryptocurrencies for exchange and trade;
•functional and easy-to-learn trading terminal;
•the presence of an author's application for mobile trading;
•lucrative referral program with discounts and rewards;
•top-tier level of protection of data and user funds;
•all major options for depositing and withdrawing funds;
•low fixed fees for trading operations;
•Crypto4Covid Fund for Covid-19 Affected People.
👎 VALR Cons:
•the exchange does not offer tutorials;
•only South African rand is presented as fiat;
•communication with technical support can be initiated exclusively through tickets.
Rules and Regulation
Licensing
Cryptocurrencies are not formally regulated in South Africa. The South African Reserve Bank (SARB) issued a statement cautioning against the use of cryptocurrencies for payments, but trading on decentralized platforms, as well as cryptocurrency mining and holding, are permissible.
Crypto investor protection in South Africa
South Africa lacks specific cryptocurrency legislation. While consumer protection laws may offer some recourse, in case of a crypto exchange failure, traders may not receive compensation directly from the government or regulatory bodies.
Cryptocurrency Taxation in South Africa
There is no specialized taxation framework for cryptocurrencies in South Africa. However, cryptocurrency traders are still required to pay income tax, typically at rates similar to those for Forex traders, ranging from 18% to 45%.
Do I recommend using VALR in the South Africa?
The VALR cryptocurrency exchange will not be a good choice for traders from South Africa. The company does not hold a license, although the main reason for that is that the financial regulator of the country does not license crypto exchanges in general. There have been security-related incidents on the platform, and the accounts are not protected in the best possible way. Also, users periodically have questions about the quality of the exchange’s operation.
FAQ
Can I work with crypto exchanges considering that they don’t have a license in South Africa?
The fact that a crypto exchange does not have a license doesn’t mean that traders from South Africa will have problems while working with it. Cryptocurrency exchanges are not subject to licensing in many countries, while there are many exchanges with good reputation. Assess the available information about the exchange and check its reputation.
What security methods for account protection do crypto exchanges employ?
Cryptocurrency exchanges may offer various security methods. These include the two-factor authentication, first and foremost, and also such methods as a security question, additional passwords, etc.
Can an exchange that has had a security-related incident in the past be trusted?
You need to check whether such incidents were regular. If it was one episode several years ago, while the reputation of the exchange is good, you can work with such an exchange.
Should I work with an exchange if I have doubts about its reputation?
No. Always choose the cryptocurrency exchanges that have a good reputation.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
