South Africa issues first-ever crypto licences to 59 platforms
TLDR
- South Africa licenses 59 cryptocurrency platforms, becoming one of the first African nations to require permits for digital asset exchanges.
- The Financial Sector Conduct Authority granted exchanges until November 30 to apply for licenses, with over 300 crypto providers seeking approvals.
- Approved firms in South Africa's cryptocurrency space include exchanges, payment gateways, advisory services, and tokenization providers.
South Africa has licensed 59 cryptocurrency platforms, putting it among the first nations on the continent to require digital asset exchanges to have permits to operate. The Financial Sector Conduct Authority, which gave exchanges until November 30 to apply for licenses or risk facing enforcement action, said more than 300 crypto-asset providers sought approvals.
This update was shared by a representative of the FSCA during the ongoing FSCA Industry Conference in Johannesburg. The regulator disclosed that it received a total of 355 applications for cryptocurrency licenses, out of which 262 are still under review.
The approved firms cover a range of business models within the cryptocurrency space, including advisory services, exchanges, payment gateways, crypto-to-crypto and crypto-to-fiat conversion platforms, crypto asset arbitrage, tokenization services, provision of index-based products, and wallet services.
Key Takeaways
The approval of operating licenses for cryptocurrency firms in South Africa marks another step in the country's ongoing efforts to relax its regulatory stance on cryptocurrencies. This move follows earlier initiatives aimed at modernizing the regulatory framework surrounding digital assets. In November 2018, the South African Reserve Bank (SARB), in collaboration with the Financial Sector Conduct Authority (FSCA), the South African Revenue Services (SARS), and the Financial Intelligence Centre (FIC), established the Crypto Assets Regulatory Working Group. This group was tasked with assessing the regulatory landscape for cryptocurrencies in South Africa. Subsequently, in July 2021, the working group published a position paper outlining recommendations for updating South Africa's policy, legal, and regulatory approach to crypto assets. Then, in August 2022, the SARB issued guidelines providing clarity on how financial institutions, including banks, could engage with crypto clients.
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