In a significant move towards regulating the burgeoning crypto market, South Africa’s Financial Sector Conduct Authority (FSCA) has officially recognized 75 institutions as licensed crypto asset service providers (CASPs). This clarification comes amidst reports misidentifying certain entities as the sole licensed institutions.
The FSCA’s announcement detailed that these licenses span across multiple categories, with over 20 CASPs securing Category I and II licenses, granting them the ability to offer comprehensive crypto-related advice, intermediary services, and investment management.
Notably, prominent crypto service providers VALR and Luno have successfully obtained their licenses, with VALR securing Category I and II approvals, and Luno achieving a Category I license. This milestone underscores the FSCA’s commitment to fostering a secure and regulated environment for crypto transactions in South Africa.
The licensing initiative, which began in June 2023, has attracted 374 applications to date. The FSCA urges caution among South Africans, reminding the public to be wary of unlicensed and potentially fraudulent investment opportunities. The authority emphasizes that it will rigorously enforce compliance, with substantial repercussions for entities operating without a license.
This regulatory advancement aligns with the FSCA’s role in overseeing financial services related to crypto assets under the FAIS Act, though it does not extend to recognizing crypto assets as legal tender. The South African Reserve Bank also maintains its stance of not recognizing crypto assets as currency, further delineating the boundaries of crypto regulation in the country.
Last modified: April 26, 2024
