Regulation
Farzam Ehsani discusses the growth of cryptocurrency exchanges and regulatory challenges
Farzam Ehsani, co-founder and CEO of VALR, South Africa’s largest cryptocurrency exchange, recently shared insights into the growth of cryptocurrency exchanges and the regulatory challenges they face. In an episode of the Public Key podcast, Ehsani discussed how VALR has navigated the complex regulatory landscape in South Africa and the potential of blockchain technology to transform traditional financial systems, according to Catenaanalysis.
Overcoming regulatory obstacles
Launching a cryptocurrency exchange in Africa poses significant challenges due to capital controls and government bans. Ehsani highlighted the importance of understanding both the local and global regulatory context. Since its inception in 2018, VALR has secured numerous global licenses, reflecting its commitment to compliance and financial sovereignty.
“You might think that it is risky now to enter the crypto sector. But I can promise you that time will change very quickly and it will be risky not to enter the crypto sector,” said Ehsani. This sentiment highlights the growing importance of cryptocurrency 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 towards Bitcoin, which later turned to support after realizing its potential to give individuals control over their finances.
He also discussed the rigorous process of obtaining licenses in multiple jurisdictions, emphasizing that financial integrity and choice are key. “The nice thing about Bitcoin is that it actually helps people understand the traditional financial system,” Ehsani noted.
VALR Expansion and Innovations
VALR recently announced the VALR Grand Slam trading competition, which boasts a $60 million USDT prize pool. 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 cryptocurrency funding round, even alienating other investors. This funding will support VALR’s mission to improve the financial system and promote the unity of the human race.
Global regulatory landscape
Ehsani provided insights into the global regulatory landscape, highlighting that while South Africa has made significant progress, other regions such as Nigeria and India still face substantial regulatory uncertainties. VALR’s approach includes 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 do. If we are welcome, let’s proceed. If we are not welcome, we don’t do it,” Ehsani explained. This approach highlights VALR’s commitment to integrity and ethical business practices.
Future perspectives
Looking ahead, Ehsani is optimistic about the future of cryptocurrency exchanges. He believes the industry will continue to grow and that 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 unwavering. 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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