VALR has secured provisional approval from the Cayman Islands Monetary Authority (CIMA) to operate as a Virtual Asset Service Provider (VASP), marking a major step in the company’s international expansion plans.
The approval allows the African crypto exchange and digital asset infrastructure provider to offer crypto trading, custody and transfer services under the Cayman Islands regulatory framework. The move strengthens VALR’s push to connect African crypto markets with global institutional investors.
VALR has received provisional approval from the Cayman Islands Monetary Authority (CIMA) to operate as a Virtual Asset Service Provider (VASP).
This approval is a cornerstone of VALR’s international growth strategy, cementing VALR’s role as the bridge between African markets…
— VALR (@VALRdotcom) May 25, 2026
Cayman approval expands crypto operations
Under the provisional approval, VALR can facilitate crypto-to-crypto and fiat-to-crypto trading, provide custody services for digital assets, and support cross-border virtual asset transfers.
The company said the approval forms part of its broader strategy to expand its infrastructure services beyond Africa and serve a growing international client base.
VALR CEO and co-founder Farzam Ehsani said the milestone reflects the company’s efforts to build secure and compliant digital asset infrastructure over the past several years.
Founded in 2018 and headquartered in Johannesburg, VALR has grown into one of Africa’s largest crypto platforms, serving more than 1.8 million users and over 2,000 institutional and corporate clients worldwide.
Building a broader regulatory footprint
The Cayman Islands approval adds to VALR’s growing list of regulatory licenses and registrations.
The company already operates under Category I and II crypto asset service provider licenses issued by South Africa’s Financial Sector Conduct Authority (FSCA). It also holds operational licenses that support the country’s payments infrastructure and financial product offerings.
VALR said the latest approval strengthens its compliance position as regulators globally continue to tighten oversight of crypto exchanges and digital asset firms.
The exchange is also registered with South Africa’s National Credit Regulator as a credit provider.
Is VALR’s focus now on institutional crypto infrastructure?
VALR said it is now working with CIMA to meet the remaining compliance conditions needed for a full VASP license.
The company has increasingly positioned itself as a digital asset infrastructure provider, offering services including spot trading, futures, staking, lending, OTC trading and crypto payment solutions.
Backed by investors such as Pantera Capital, Coinbase Ventures and F-Prime Capital, VALR is aiming to expand its role in global stablecoin payments and institutional crypto markets.
In 2025, the Cayman Islands rolled out new licensing requirements for cryptocurrency custody and trading platforms. The updated VASP Amendment Regulations, 2025, mandate that all digital asset custodians and trading platforms secure a license from the CIMA to continue operations.
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