Valr, a South-African based crypto exchange, has disclosed it has discontinued its crypto arbitrage service to new customers. This decision comes as a result of complying with the requirements of its banking partner.
Valr recently announced its exit from the South Africa market, followed by Ovex, a crypto arbitrage service that was the first to leave after issuing a statement informing its clients of the decommissioning on January 31.
Valr becomes the latest South African cryptocurrency exchange to exit the crypto arbitrage market beginning on February 28.
While Ovex did not share its reasons for exiting, Valr is quoted in a Moneyweb report suggesting that partner requirements forced the exchange to make the decision. Valr, however, insists its exit from the arbitrage market will not affect other services. The company said:
The decision to discontinue our arbitrage service has been taken to comply with some of our banking partner requirements. No other Valr services are affected and your funds remain secure. You will continue to have access to Africa’s largest marketplace for crypto assets with the ability to buy, sell and store over 60 cryptos on Valr.
Banks Hostile to Crypto Arbitrage Traders
This message was reiterated by the exchange’s COO Gianluca Sacco, who suggested that Valr will now focus on its core business.
Meanwhile, Asif Aziz, the chief technology officer of Libex — another crypto exchange that claims to have been pressured to end its arbitrage service — said banks’ hostility towards crypto arbitrage could be one of the reasons why exchanges are abandoning the business.
