South African Regulator Grants Approval to 59 Crypto Platforms for Resident Services
South Africa’s financial regulator, the Financial Sector Conduct Authority (FSCA), has granted approval to 59 license applications from cryptocurrency platforms seeking to offer services to residents.
During a financial conference, Felicity Mabaso, the FSCA divisional executive, revealed that the regulator received a total of 355 license applications, with 262 still pending, according to a report from News24 .
In response to this influx, the FSCA set a deadline of November 30 for exchanges and cryptocurrency platforms to submit license applications or face enforcement measures.
FSCA Commissioner Unathi Kamlana explained that the application processing is ongoing and being carried out gradually due to the high number of applications.
The FSCA has chosen to utilize South Africa’s existing Financial Advisory and Intermediary Services Act (FAIS) to regulate the crypto sector.
According to Commissioner Kamlana, the FAIS provides a robust framework that covers crucial aspects of the crypto business, including user protections and enforcement actions when necessary.
However, Kamlana acknowledges the possibility of future adjustments.
“As we license and supervise, we will discover that perhaps there are gaps that cannot be closed by the existing regulatory framework, the FAIS Act. And we might need to build on that as we discover what those are.”
UPDATE: South Africa has started issuing crypto licenses, with @LunoGlobal and @zignaly among the first recipients. pic.twitter.com/miaR5op4FY
— ARK Mining (@ARKMining_) April 11, 2024
While specific details about the approved companies have not been disclosed, it is expected that the licensed entities include crypto exchanges and firms offering custody services.
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