VALR, South Africa’s leading cryptocurrency exchange by trading volume, has secured two pivotal licenses from the Financial Sector Conduct Authority (FSCA), strengthening its position as a trailblazer in the nation’s digital asset landscape. The Johannesburg-based platform, established in 2018, now holds an Over-The-Counter Derivatives Provider (ODP) license and an additional Financial Services Provider (FSP) license, making it one of the first entities in South Africa to offer such services for crypto assets. As reported by Disrupt Africa, these approvals mark a significant milestone in integrating cryptocurrencies with traditional financial instruments, enhancing VALR’s ability to serve its growing client base.
With a user base exceeding 1.4 million traders globally and over 1,400 corporate and institutional clients, VALR facilitates trading, storage, and transfer of Bitcoin and more than 60 other cryptocurrencies, boasting the widest selection in Africa. The platform’s offerings include spot trading, futures, staking, lending, over-the-counter (OTC) trading, and VALR Pay, a proprietary payment solution. Already a fully licensed Virtual Asset Service Provider under the FSCA, VALR has also secured regulatory approvals in Europe and initial clearance from Dubai’s Virtual Assets Regulatory Authority (VARA), as noted in TechCabal. Its recent Proof of Reserves audit, conducted by blockchain security firm Hacken, further underscores its commitment to transparency and compliance.
The ODP license empowers VALR to introduce a range of derivative products, including Contracts for Difference (CFDs) tied to cryptocurrencies, currencies, commodities, shares, and indices, as well as Quarterly and Perpetual Futures Contracts, Options, Forwards, and Swaps with crypto assets as the underlying instruments. This positions VALR at the forefront of South Africa’s financial innovation, as one of the first providers to offer such products locally. The additional FSP license broadens its scope to include traditional financial products like deposits, shares, bonds, and securities, aligning crypto with mainstream finance. According to BusinessLIVE, this dual licensing enhances VALR’s capacity to cater to diverse investor needs in a rapidly evolving market.
South Africa’s cryptocurrency sector has seen exponential growth, with the country ranking among the top 30 globally for crypto adoption, driven by 12.7 per cent of internet users owning digital assets, per a 2025 report from Chainalysis. VALR’s licenses come at a time when the FSCA is tightening oversight, having declared crypto assets as financial products in 2022 and licensed 59 platforms by mid-2025, as detailed in Moneyweb. The ODP license, in particular, reflects the regulator’s confidence in VALR’s robust systems, especially after its $50 million Series B funding round in March 2022, which valued the company at $240 million and drew investment from Pantera Capital and Coinbase Ventures.
Farzam Ehsani, VALR’s co-founder and CEO, highlighted the licenses as a crucial step towards delivering secure, compliant products that bridge crypto and conventional finance. The move supports South Africa’s broader financial inclusion goals, addressing a market where 43 per cent of adults remain unbanked, according to FinMark Trust. By leveraging advanced trading tools, VALR aims to attract both retail and institutional investors, offering sophisticated products previously inaccessible in the local crypto space. Its global reach, spanning clients in 38 countries, positions it to capitalise on Africa’s projected $40 billion crypto market by 2030, as forecasted by Statista.
The licenses also align with South Africa’s exit from the Financial Action Task Force’s grey list on 24 October 2025, a development expected to boost investor confidence and capital inflows. Reuters notes that this delisting could reduce compliance costs for financial institutions, further amplifying VALR’s growth potential. The platform’s integration of crypto derivatives taps into a global trend, with such products accounting for 70 per cent of crypto trading volumes worldwide in 2024, per CoinGecko. Locally, VALR’s futures and options offerings could appeal to traders seeking to hedge against volatility in assets like Bitcoin, which fluctuated 40 per cent in value over the past year.
As VALR rolls out these new services, it faces competition from platforms like Luno and global players like Binance, yet its regulatory edge and comprehensive product suite provide a distinct advantage. The company plans to expand its institutional offerings, including custody solutions, while exploring partnerships with banks to enhance crypto-fiat integration. MyBroadband reports that VALR’s focus on user education, through initiatives like its Crypto School, will further drive adoption among South Africans wary of digital assets. With these licenses, VALR is poised to redefine the intersection of crypto and traditional finance, cementing South Africa’s role as a fintech hub on the continent.