AltCoinTrader, a crypto asset service provider (CASP) based in South Africa, has become the latest crypto assets provider to receive both category one and category two licenses by the Financial Sector Conduct Authority (FSCA).
“AltCoinTrader this week reached a fundamental status by being approved as a FSP by the South African regulator. Even though the exchange has been operating as a fully compliant exchange for many years now, we are proud to be an approved, registered and licensed crypto exchange.”
AltCoinTrader is celebrating this week as South Africa's favourite cryptocurrency exchange has been approved and is now a registered Financial Service Provider (FSP). But what does this mean for AltCoinTraders and why is this such a big deal? https://t.co/9iutMpp3Ny #Crypto… pic.twitter.com/pelSVxgsdm
— AltCoinTrader (@AltCoinTraderSA) April 16, 2024
AltCoinTrader lets you trade the top listed cryptocurrencies in the world all using South African Rands [ZAR]. The platform operates a website and mobile app listing all coins in one place including Bitcoin, Ethereum, Ripple, Tether, Monero and even precious metals, Gold and Silver.
According to the company, obtaining an FSCA licence indicates that firms such as AltCoinTrader have met the authority’s stringent requirements for CASPs.
In 2022, in a first for Africa, FSCA classified crypto assets as financial products requiring regulatory oversight. 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
The Financial Action Task Force’s (FATF) greylisting of South Africa in 2023 over lax money laundering and terror-financing regulations further put pressure on the country’s authorities to hasten crypto asset regulation, often ahead of their worldwide counterparts.
Richard de Sousa, Founder of AltCoinTrader, said:
“The licensing of CASPs is a positive development for the South African crypto industry. It provides regulatory clarity for both businesses and consumers, fostering greater trust and participation in the market. This could lead to a wider adoption of cryptocurrencies in South Africa, opening up new investment opportunities and avenues for financial inclusion.
While licensing is a significant step, South Africa still has some way to go in terms of comprehensive crypto regulation and we expect the FSCA to continue developing a regulatory framework that balances innovation with financial stability and consumer protection.
We are excited to lead the charge toward a more inclusive, accessible, and transparent financial future.
The South African regulator is thought to have approved 60 applications from crypto providers registered in the country, with firms such as:
among the first to officially receive their licenses form the FCSA.
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