South Africa Grants Approval to 59 Cryptocurrency Platforms
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.
FSCA Uses South Africa’s Existing Regulations
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.
South Africa Considers Creating New Regulatory Framework
South Africa has been actively considering the creation of a new regulatory framework for the crypto industry since 2021. In 2021, the FSCA published a paper highlighting that cryptocurrency assets will be brought into the South African regulatory purview in a “phased and structured manner.”
Although the framework was initially expected to be completed by the end of 2022, the South African Reserve Bank (SARB) has already declared cryptocurrencies as financial assets rather than currencies. The FSCA aligns with this classification, stating that digital assets should be treated as financial products.
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