The financial regulatory authority in South Africa has declared that by the end of 2023, licenses will be mandatory for all cryptocurrency exchanges operating within the country.
Unathi Kamlana, the commissioner of the Financial Sector Conduct Authority (FSCA), mentioned that around 20 license applications have been submitted to the agency since its recent launch. Kamlana also expects more applications to be received before the November 30 2023 deadline.
Kamlana also stated that if crypto exchanges continue to operate without obtaining a license after the deadline, the regulator is prepared to take ‘enforcement action.’ This action could potentially include imposing fines or even shutting down non-compliant firms.
While noting that the regulatory measures are necessary to protect customers, Kamlana emphasized the importance of allowing time to evaluate the effectiveness of these measures. Furthermore, he assured that there would be continued collaboration with the industry to refine and implement any necessary changes in the regulatory framework.
By implementing this initiative, South Africa has become the first country on the African continent to mandate the acquisition of licenses for digital asset exchanges.
South Africa is home to several exchanges including:
- Luno, owned by Digital Currency Group
- VALR, backed by Pantera Capital
- Additionally, global platforms like Binance that operate within South Africa will also be required to obtain licenses as per the new regulatory requirements
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