South Africa’s leading cryptocurrency exchange, VALR, is set to broaden its crypto asset services beyond its home turf, targeting international markets like Poland and beyond.
CEO Farzam Ehsani revealed to Reuters the company’s ambitious plans to compete with global crypto giants by offering similar products and services while ensuring regulatory compliance in each jurisdiction.
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VALR’s Regulatory Milestones in Crypto
VALR’s expansion comes on the heels of receiving licences from the Financial Sector Conduct Authority (FSCA) in South Africa, a move that solidifies its position as a regulated platform for crypto trading. This regulatory approval marks a significant milestone in the journey towards mainstream adoption of cryptocurrencies in South Africa and paves the way for VALR’s global expansion strategy.
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With over 600,000 retail and 1,000 institutional customers, VALR has established a strong presence in South Africa’s crypto market. However, Ehsani aims to diversify the exchange’s client base by attracting more users from international markets. Currently, 25% of VALR’s customers are global, and the company aims to increase this share significantly.
International Crypto Expansion Plans
VALR has already secured approval to offer crypto asset services in Poland and is obtaining licences in other jurisdictions, including Dubai and Mauritius. The exchange aims to cater to a global audience and become a prominent player in the global crypto market.
While VALR is eager to expand its operations, regulatory clarity remains a crucial consideration. The exchange will prioritise jurisdictions with clear regulatory frameworks, ensuring compliance with local laws and regulations. In some cases, such as Nigeria, regulatory uncertainty has led VALR to postpone its expansion plans until there is clarity from authorities.
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To compete with established crypto giants like Binance, VALR plans to offer a wide range of products and services, including spot trading, margin trading, perpetual futures, and staking. Additionally, the exchange is exploring options such as insurance to enhance its offerings further and attract more users.
While VALR holds a licence for general crypto asset trading in South Africa, it collaborates with other financial service providers for specific products like perpetual futures trading. This partnership model ensures compliance with regulations while expanding VALR’s product offerings to meet the diverse needs of its customers.