VALR, South Africa’s crypto exchange, has been granted an Over-The-Counter Derivatives Provider license and an additional Financial Services Provider license by the Financial Sector Conduct Authority.

The ODP license allows VALR to offer Contracts for Difference and other derivatives with crypto assets and traditional assets as underlying instruments. According to the firm, these approvals make VALR one of the first entities in South Africa to provide such crypto-based services.

VALR Licensed for Crypto and Traditional Products

The ODP license enables VALR to offer a range of over-the-counter products, including CFDs on crypto assets, currencies, commodities, shares, and indices, as well as Quarterly and Perpetual Futures, Options, Forwards, and Swaps with crypto assets as the underlying. This is among the first instances in South Africa where a licensed financial service provider can offer such crypto derivatives.

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The FSP license expands VALR’s offerings to traditional financial products, including deposits, shares, bonds, and other securities.

South Africa Updates Crypto Derivatives Regulations

In April 2024, VALR became one of the first crypto asset service providers in South Africa to receive both Category I and Category II licenses from the FSCA.

The latest approvals further develop South Africa’s regulatory framework for digital assets. They are expected to support financial inclusion and innovation in a market where crypto adoption is growing. They also position South Africa as one of the first African nations to regulate crypto derivatives.

Source: Finance Magnates