African Regulators Gain Understanding of Cryptocurrency
According to Farzam Ehsani, CEO of crypto exchange Valr, institutional traders contribute significantly to Africa’s crypto trading volumes. While there are retail traders in the market, it is a misconception that large investors have little involvement in Africa’s crypto space.
Improvements in Regulation
Ehsani notes that African regulators have made progress in understanding the crypto industry, leading to the establishment of appropriate regulations. South Africa and Mauritius are two countries that have required crypto entities to submit license applications.
Factors Driving Crypto Adoption
Ehsani explains that traditional banking systems are slow and costly in Africa, particularly for cross-border transactions. Additionally, Central banks in Africa, like those in the rest of the world, intentionally devalue their currencies. Bitcoin and crypto offer a hedge against this devaluation and provide an alternative economic model.
Expansion Plans and Product Offerings
With recent funding, Valr aims to expand its product offerings and dedicate resources to different geographies. The exchange has launched perpetual futures and intends to compete on a global scale while providing a seamless trading experience and maintaining integrity.
Institutional Investors in Africa
Contrary to popular belief, institutional investors play a significant role in Africa’s crypto market. Ehsani states that institutional traders account for the majority of the trading volumes on the continent and use sophisticated strategies to execute trades.
Regulation and Partnerships
African regulators have been proactive in regulating the crypto market, with Valr collaborating with them to establish responsible frameworks. Valr has also partnered with Visa to develop payment solutions for its customers, leveraging VALR’s crypto expertise and Visa’s payment experience.
Unique Insights from Africa
Valr, as a South African exchange expanding globally, has gained unique insights from operating in Africa. The exchange has built a platform comparable to the best in the world, catering to institutional customers with advanced features, a robust compliance framework, and a capable international team.
Hot Take: Crypto Adoption and Institutional Trading on the Rise in Africa
Farzam Ehsani, the CEO of Valr, emphasizes that institutional traders are an integral part of Africa’s crypto market, dispelling the myth that only retail investors are involved. African regulators have made progress in understanding the crypto industry and implementing appropriate regulations. Factors such as slow and expensive traditional banking systems and intentional currency devaluation by central banks have driven crypto adoption in Africa. Valr, with its recent funding and partnerships, aims to expand globally and provide a seamless trading experience while maintaining integrity. As Africa’s crypto market continues to grow, institutional investors play a significant role in driving its trading volumes.
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