VALR Wins FSCA Nod, Becomes One of South Africa’s First Licensed Crypto Derivatives Providers

The new licences position South Africa as Africa’s emerging hub for regulated crypto derivatives and digital finance.

Oct 21, 2025

VALR, South Africa’s largest crypto exchange, has secured licences from the Financial Sector Conduct Authority (FSCA) to operate as an Over-the-Counter Derivatives Provider (ODP) and a Financial Services Provider (FSP). The move signals South Africa’s push to merge digital assets with traditional finance under one regulatory roof.

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South Africa Enters the Regulated Derivatives Era

VALR announced the approvals on October 21, 2025, calling it a milestone for the country’s crypto ecosystem. The approvals allow VALR to roll out a suite of regulated derivatives, from CFDs and futures to options and swaps, built on both digital and traditional asset classes.

This move puts VALR in the pioneering group of exchanges cleared to offer crypto-linked derivatives in South Africa, opening institutional investors to hedging tools that were previously available only in legacy finance.

Why It Matters

The FSCA’s decision aligns with South Africa’s broader campaign to modernise its OTC derivatives framework. Over the next few years, regulators are preparing to enforce tougher capital standards and central-clearing mandates to curb systemic exposure and boost transparency.

VALR co-founder and CEO Farzam Ehsani said the ODP licence “integrates crypto assets with established financial instruments,” enabling the exchange to deliver compliant, secure trading to over 1.6 million users and 1,800 institutional clients.

A Broader Shift Toward Convergence

These latest permissions follow VALR’s 2024 Category I and II licences, reinforcing South Africa’s reputation as one of the continent’s most forward-thinking regulators in the digital-asset space.

Global exchanges such as Kraken, Binance, and GFO-X are broadening their regulated derivatives reach, a trend African policymakers are watching closely as they design frameworks to lure institutional capital into digital markets.

The Bottom Line

With the FSCA’s green light, South Africa strengthens its standing in global regulatory circles, evidence that emerging-market crypto ecosystems can mature within clear, enforceable rules.

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