The Financial Sector Conduct Authority (FSCA) in South Africa is taking action against illegal crypto services. They are investigating 30 cases of businesses operating without the right license.
In October 2022, the FSCA classified crypto assets as financial products. They began accepting license applications in June 2023, giving existing businesses until November 2023 to apply under the Financial Advisory and Intermediary Services (FAIS) General Code.
As of now, the FSCA has received 383 license applications. Out of these, 63 have been approved, and 5 have been rejected because the applicants did not meet the necessary standards. Those who were rejected can reapply once they meet the requirements. Unauthorized crypto businesses, however, will face regulatory action to protect consumers and ensure fairness in the industry.
The FSCA emphasizes that operating without authorization is not allowed. Only those who applied by November 2023 and are awaiting approval can continue operating legally. Additionally, the FSCA clarified that crypto assets are not legal tender in South Africa, despite some media reports.
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