Regulation
Farzam Ehsani discusses the growth of crypto exchanges and regulatory challenges
Farzam Ehsani, co-founder and CEO of VALR, South Africa’s largest cryptocurrency exchange, recently shared his views on the growth of cryptocurrency exchanges and the regulatory challenges they face. In an episode of the Public Key podcast, Ehsani explained how VALR navigated the complex regulatory landscape in South Africa and the potential of blockchain technology to transform traditional financial systems, according to On-Chain Analysis.
Overcoming regulatory hurdles
Launching a crypto exchange in Africa poses significant challenges due to capital controls and government bans. Ehsani emphasized the importance of understanding local and global regulatory environments. Since its inception in 2018, VALR has obtained several global licenses, reflecting its commitment to compliance and financial sovereignty.
“You might think it’s risky to get into crypto now. But I can promise you that time will change very quickly and it will be risky not to get into crypto,” Ehsani said. This sentiment highlights the growing importance of cryptocurrencies in the global financial landscape.
Financial sovereignty and integrity
Ehsani highlighted the importance of financial sovereignty and the role of Bitcoin (BTC) in helping people understand traditional financial systems. He recounted his initial skepticism of Bitcoin, which later turned into advocacy after realizing its potential to offer individuals control of their finances.
He also discussed the rigorous process of obtaining licenses in several jurisdictions, emphasizing that integrity and choice in financing are paramount. “The great thing about Bitcoin is that it really helps people understand the traditional financial system,” Ehsani remarked.
Expansion and innovations of VALR
VALR recently announced the VALR Grand Slam trading competition, featuring a prize pool of $60 million USDT. This initiative is part of VALR’s strategy to expand its global presence and make cryptocurrencies more accessible through innovative financial solutions.
Despite the challenges, VALR managed to raise $50 million in Africa’s largest ever crypto funding round, even turning away additional investors. This funding will support VALR’s mission to modernize the financial system and promote the unity of the human race.
Global regulatory landscape
Ehsani provided an overview of the global regulatory landscape, noting that while South Africa has made significant progress, other regions such as Nigeria and India still face significant regulatory uncertainties. VALR’s approach involves transparent communication with regulators and compliance with local laws, even when they disagree with certain regulations.
“We tell our bankers, we tell our regulators exactly what we’re doing. If we are welcome, we proceed. If we’re not welcome, we’re not welcome,” Ehsani explained. This approach underscores VALR’s commitment to integrity and ethical business practices.
Future prospects
Looking ahead, Ehsani is optimistic about the future of crypto exchanges. He believes the industry will continue to grow and regulatory clarity will improve over time. VALR aims to be at the forefront of this growth, leveraging its robust platform and innovative solutions to serve a global audience.
As VALR continues to navigate the complexities of the crypto landscape, its commitment to financial sovereignty, integrity, and innovation remains steadfast. The company’s efforts to expand globally and its proactive approach to regulatory compliance position it as a key player in the evolving world of cryptocurrency.
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