REGULATION | Crypto Social DeFi Investment Platform, Zignaly (ZIGDAO), Secures Category 2 License from South African Regulator, FSCA

As of April 2024, Zignaly has over $120 million crypto invested, over 430,000 members, and over $5.6 billion in trading volume. Crucially, this license positions Zignaly at the forefront of regulatory anticipation within the DeFi space.

Crypto social investment platform, Zignaly (Now ZIGDAO), has secured a Category II license from the Financial Services Conduct Authority (FSCA) in South Africa.

Zignaly received a Category 2 – Discretionary Financial Service Provider (FSP) license and appears in the FSCA registry as Merritt Administrators PTY LTD. This comes as South Africa steps up the provision of licenses to about 60 crypto asset providers, including Crypto Exchange, Luno, which was the first licensed crypto service in South Africa to be announced.

Zignaly is intended to offer actively managed investment services where users can invest with expert crypto traders and managed funds. Investors only pay a fee if they make a profit.

The company came into existence in 2017 as a marketplace for novice Crypto investors to delegate their investment management to seasoned traders. Ever since, the platform has evolved and adapted to change, incorporating the use of technology to improve its services.

Zignaly has grown from subscription-based models like signal providing and copy trading to one of its defining features, the profit-sharing model, where investors pay traders a fee only when they turn up a profit.

“What really sets Zignaly apart is its profit-sharing feature. Crypto investors can duplicate the trades of up to 100 expert traders — and only pay trading fees when profits are made from closed positions,” said the partners.

“From day one, we’ve been steadfast in our commitment to regulatory compliance. However, at the outset, when we started, and for long after that, regulations and licensing requirements were virtually nonexistent. Nevertheless, our dedication to learning and adaptability remained inexhaustible,” said Zignaly.


Now with the regulation, the company says its platform is set to re-define investment management within the centralized landscape, backed by a fully doxxed team. In addition to the profit-sharing model, Zignaly counts Z-Prime, and the AI-powered, Z-Score, as part of their innovations in the investing space:

  • Z-Score – The Z-Score uses intricate weighting and multi-faceted factors, such as profitability, risk, profit to risk balance, to score traders and identify the best ones for the investors on Zignaly
  • Z-Prime – A customized investment platform for digital assets hedge funds, investment community leaders, private fund managers, and high-networth investors

As of April 2024, Zignaly has:

  • Over $120 million crypto invested
  • Over 430,000 members
  • Over $5.6 billion in trading volume

Zignaly says the its platform lowers the barriers to entry for investors wanting to add digital assets to their portfolios while leaving the risky trading and decision making to expert traders and funds.

The Zignaly infrastructure supports sales and initial DEX offerings (IDO) on a number of blockchains including Ethereum, Polygon, Solana, Avalanche and BNB Chain (formerly Binance Smart Chain), among others. The platform is backed by the native ZIG token.


“With clarity on the regulations front, we’re set to accelerate our growth and take the Zignaly ecosystem to newer heights with the aid of mainstream marketing channels, and partnerships that were otherwise impossible to pursue, given the lack of a license.”


NB: After launching the ZIG token, Zignaly plans to become a DAO and is thus rebranding as ZIGDAO.




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