South African virtual currency exchange VALR has been granted an over-the-counter derivatives provider license and an additional financial services provider license from the Financial Sector Conduct Authority.
The ODP license will enable VALR to offer contracts for difference and other derivatives with crypto assets and traditional assets as underlying assets. According to the company, these approvals make VALR one of the first companies to offer such crypto-based services in South Africa.
The ODP license will enable VALR to offer a wide range of over-the-counter products, including CFDs on crypto assets, currencies, commodities, stocks and indices, as well as quarterly and perpetual futures, options, futures and swaps with crypto assets as the underlying asset. This is one of the first instances in South Africa where a licensed financial services provider can offer such crypto derivatives.
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The FSP license extends VALR’s offering to traditional financial products including deposits, stocks, bonds and other securities.
VALR secures over-the-counter derivatives provider license from South African regulator
Johannesburg, South Africa, October 20, 2025, Chainwire
VALR, South Africa’s largest crypto exchange by trading volume, has acquired an over-the-counter trading D… https://t.co/mspAUW6qhT
— Press Release (@press_newswire) October 20, 2025
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.
This approval further develops South Africa’s regulatory framework for digital assets. These are expected to support financial inclusion and innovation in markets where cryptocurrency adoption is growing. They also position South Africa as one of the first African countries to regulate crypto derivatives.
South Africa plans to tighten over-the-counter trading rules
South African regulators are preparing changes to the OTC derivatives market to reduce systemic risk and increase oversight of non-bank providers. FSCA plans to introduce capital and central clearing requirements over the next three years.
Certain OTC products may require settlement through a central counterparty. Non-bank providers are expected to face stricter capital controls in line with banks. Industry consultation on the proposals will begin prior to implementation.
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