The Financial Sector Conduct Authority (FSCA) has granted licenses to 75 institutions, marking South Africa’s inaugural batch of licensed crypto asset service providers.
The full list, including the likes of Peresec, Unum Capital and LUNO, authorises a range of well-known and lesser-known entities to provide crypto services across three main authorised activities:
- Advice
- Intermediary services, and
- Investment management
This development follows weeks of individual announcements by crypto exchanges, investment advisories, funds, and arbitrage operators, confirming that they have obtained their licenses. The FSCA expressed concern regarding ‘certain institutions’ proclaiming themselves as the first or sole licensed crypto asset service providers (CASPs).
Some of the firms that released announcements earlier include:
“The FSCA continues to receive and consider applications from new and existing CASPs,” the South Africa’s financial regulator stated.
“374 licence applications have been received to date. The FSCA will continue to provide regular updates as these applications are processed and approved.”
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 FSCA however emphasized its stance that it does not consider any crypto asset as currency.
“The public is reminded that the FSCA’s licensing powers are limited to the authorisation and supervision of CASPs only insofar as they render financial services related to crypto assets,” it said.
“This authorisation does not include the recognition of crypto assets as legal tender or ‘cryptocurrency,” the FSCA added.
Any media reports implying otherwise are therefore incorrect as the South African Reserve Bank does not currently recognise crypto assets as currency.”
Follow this link for the full list of approved firms.
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