South Africa’s Financial Sector Conduct Authority has approved a further 63 licence applications, bringing the number of licensed CASPs in South Africa to 138.
On April 22 2024, FSCA confirmed that it had, at that point, approved a total of 75 institutions to be licensed as Crypto Asset Service Providers (CASPs), while continuing to receive and consider applications from new and existing CASPs.
“The total number of applications received to date is 383, of which five have been declined. A further 80 applications have been voluntarily withdrawn by applicants following engagements with the FSCA on the appropriateness of their respective business and operating models. The remaining applications continue to be under consideration,” the organization said in a press release.
The main reasons behind declinations include:
- Failure to provide clear and comprehensive business plans and business model descriptions outlining crypto asset activities
- Firms were also rejected due to their inability to demonstrate the requisite knowledge and practical experience pertaining to crypto assets
FSCA classified crypto assets as financial products requiring regulatory oversight in 2022, being the first African country to do so. According to the authority, this aims to protect consumers from the inherent risks associated with the crypto market, such as fraud and money laundering.
South Africa’s🇿🇦 Financial Regulator, FSCA, Declares Crypto Assets as a Financial Product
A crypto asset is used as an investment vehicle… and it resembles a financial product – you invest in it, you get returns from it.” – FSCAhttps://t.co/FOAe4pMmy3
— BitKE (@BitcoinKE) October 21, 2022
However, the body reiterated that its licensing powers are limited to the authorisation and supervision of CASPs only insofar as they render financial services related to crypto assets as defined under the FAIS (Financial Advisory and Intermediary Services) Act.
This authorisation does not include the recognition of crypto assets as a legal form of tender or ‘cryptocurrency.’ The South African Reserve Bank does not currently recognise crypto assets as currency. Any media reports implying otherwise are therefore incorrect.
The full list of the 138 licensed CASPs may be accessed on the FSCA’s website via this link: Approved list of crypto asset service providers.
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