South Africa’s Financial Sector Conduct Authority (FSCA) has given licences to 59 crypto companies by March 12, 2024, according to media reports citing an FSCA representative. The FSCA has yet to respond to requests for comments.
These firms offer various services like advice, exchanges, payment gateways, converting crypto to regular money (fiat), crypto trading, tokenizing assets, index products, and digital wallets.
Out of 105 companies that applied, only 50 made it to the licensing committee last December, with 20 withdrawing their applications. Felicity Mabaso, from the FSCA, warns that companies not licensed but still operating will face investigations and consequences.
This action follows the FSCA’s decision in October 2022 to regulate crypto. They classified cryptocurrencies as financial products to protect consumers and prevent illegal activities like money laundering and terrorism financing.
To comply, crypto firms had to apply for licences by November 2023, aiming for better regulation that benefits all parties in the industry, as stated by Cedric Jeannot, CEO of Be Mobile Africa.
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