Driving Crypto Adoption and Growth in Africa: Insights from VALR's AMA

Clear regulatory frameworks and licensing structures in African markets, particularly South Africa, are paving the way for accelerated crypto adoption and growth, addressing many of the region’s long-standing financial challenges. This was a key takeaway from Cointelegraph’s recent AMA with VALR, South Africa’s largest cryptocurrency exchange. The exchange’s leadership team, including Chief Operating Officer Gianluca Sacco and Chief Marketing Officer Ben Caselin, discussed VALR’s expansion, the unique opportunities within the African crypto market, and the growing role of crypto lending in the region.

VALR’s Journey: Expanding Horizons

Launched seven years ago, VALR quickly identified South Africa’s underserved market, recognizing a significant demand for crypto assets. “We noticed that the market in South Africa was underserved and saw a significant demand for crypto assets,” said Sacco, reflecting on the exchange’s origins.

VALR’s success has allowed it to extend its services beyond Africa, with licenses now granted in South Africa and the European Union through Poland. The platform is also seeking a license in the Cayman Islands, has received initial approval in Dubai, and is eyeing potential expansion into Hong Kong.

Sacco highlighted the platform’s commitment to user-centric development: “We care a lot about the product, its development, and our users—that’s why we continue to stay in the market and that’s what sets us apart,” he noted.

South Africa’s Progressive Regulatory Framework

South Africa’s progressive approach to crypto regulation has played a crucial role in fostering market growth. Caselin emphasized the importance of a supportive regulatory environment, noting, “We’re in a very good place. Crypto traction is much more pronounced in emerging markets than it is in the US or Europe. This is related to the quality of the financial system.”

As the financial landscape in Africa has long been marked by challenges like high inflation, limited access to traditional banking services, and capital controls, cryptocurrencies have proven to offer practical solutions. “Crypto has real use cases in Africa, as it helps people make cross-border transactions freely, easily, and more cheaply,” Sacco explained. He added that cryptocurrencies provide a way to invest outside of government control, with dollar stablecoins and Bitcoin being particularly attractive assets for African users.

VALR’s significant role in this ecosystem is underscored by its status as one of the largest global minters of USDC, providing users with convenient access to US dollar on-ramps wherever they are located.

Crypto Lending: The Next Frontier

As the cryptocurrency industry matures, lending is emerging as a key focus. Sacco highlighted how crypto lending will become increasingly relevant for crypto natives as the market stabilizes. "I think the focus will shift from active trading to finding yield opportunities," Sacco said, emphasizing the potential of crypto lending platforms like VALR.

Launched in January 2025, VALR’s lending product allows users to earn hourly interest on their crypto assets, with payments directly deposited into their wallets. “You can lend at rates that can’t be matched elsewhere, either in CEXs or DeFi protocols, because of the structural differences on the African continent,” Sacco explained. The platform's lending offering includes features like the ability to unlock funds within an hour, providing a level of liquidity that’s highly valued in the African market.

Sacco also noted that crypto trades in South Africa often occur at a premium due to supply constraints, driven by capital controls. This scarcity creates price dynamics that benefit both traders and lenders, highlighting the unique market conditions that VALR navigates.

Expanding Trading Options and Financial Flexibility

VALR's platform offers a wide range of features to enhance the trading experience for users. In addition to supporting spot trading, VALR also provides leveraged spot margin trading across nearly 50 crypto pairs, with plans to introduce perpetual futures contracts and up to 20x leverage in the near future.

A standout feature of VALR is its liquidity pool, which sets it apart from other exchanges that rely on external sources for liquidity. “It gives us our own rhythm and price dynamics, which makes VALR an attractive addition to a trader’s portfolio of exchanges,” said Caselin.

To further ensure user flexibility, VALR allows traders to manage their funds through a single account and create multiple sub-accounts for risk isolation and strategy customization. The platform also employs a more gradual approach to liquidations, typically in small increments, aiming to protect users and provide them with more control over their funds.

Encouraging Participation Through Competitions

VALR has also introduced a variety of trading competitions to encourage engagement and reward active traders. Currently, the exchange is running a Spot Margin competition with a prize pool of $10,000 USDT. Unlike other exchanges that require registration to participate, VALR automatically enters users into these contests, giving everyone the opportunity to compete.

As part of its commitment to user engagement, the exchange also offers rewards for the top traders in individual pairs, further incentivizing activity on its platform.

Future Plans: Expanding Product Offerings

Looking ahead, VALR plans to expand its product offerings and deepen its market presence. “We also want to expand into traditional products,” Sacco said, mentioning a potential top 10 index, along with equities and bonds. These additions will enable VALR to offer its clients access to a broader range of markets, positioning the exchange as a versatile player in the global financial ecosystem.

Conclusion

VALR’s success in South Africa and broader Africa highlights the growing role of cryptocurrencies in emerging markets, where clear regulations and innovative products are addressing long-standing financial challenges. With its focus on crypto lending, a unique liquidity pool, and a user-first approach, VALR is well-positioned to continue driving crypto adoption and financial inclusion across the continent and beyond.