The Financial Sector Conduct Authority (FSCA) of South Africa has approved 59 operating licences for cryptocurrency businesses, an official has said according to a Reuters report.
The decision follows the FSCA’s classification of crypto assets as financial products in 2022 requiring regulatory oversight. This aims to protect consumers from the inherent risks associated with the crypto market, such as fraud and money laundering.
The regulation of these assets also grants explicit powers to the Reserve Bank of South Africa (RBSA) Financial Surveillance Department, enabling them to compel South African crypto asset trading platforms to report transactions involving crypto assets. As reported by BitKE in February 2024, the country is already considering amendments to its Financial Intelligence Centre (FIC) Act to mandate reporting of all crypto transactions exceeding 49,999 South African Rand ($2,650).
🇿🇦REGULATION | South Africa May Soon Require Crypto Operators to Report Transactions Over $2,650🇿🇦
"The FIC Act requires accountable institutions to report all cash transactions exceeding R49 999 ($2,650) to the FIC, as this information may be valuable during criminal…
— BitKE (@BitcoinKE) February 23, 2024
Speaking at a financial sector conference, Felicity Mabaso, a divisional executive at the FSCA, said the authority had received 355 licence applications, with 59 approved as of March 12 2024. About 262 applications are in progress.
Although the FSCA has not disclosed the specific names of the approved businesses, it expects the list to cover a wide spectrum of crypto-related operations such as:
- Cryptocurrency exchanges
- Custody services for crypto assets
- Payment processors facilitating crypto transactions
- Brokerage firms dealing in crypto assets
The licensing process commenced in June 2023 with an initial deadline of November 30 2024.`
Many in the crypto space see the move as a sign of an embracing of the technology in the country, with South Africa being the first country on the African continent to mandate the acquisition of licenses for digital asset exchanges.
#Bitcoin/Crypto Companies in #SouthAfrica Now Required to Apply for Licenses by Financial Watchdoghttps://t.co/jraeTL8Vlc
— â‚¿itcoin Xoe ðŸ‡ðŸ‡¹ (@Bitcoin_Xoe) June 4, 2023
Nevertheless, some industry experts stress the importance of having clearer details regarding specific regulations and ongoing compliance requirements to fully grasp the nuances of the new regulatory landscape.
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