The Financial Sector Conduct Authority On March 12th approved operating licenses for 59 cryptocurrency firms.
This was stated at the ongoing FSCA Industry Conference in Johannesburg. 355 applications for crypto licenses were reported to be received, of which 59 were approved, while 262 are still being vetted according to the regulator.
Felicity Mabaso, divisional executive for licensing at the FSCA said “Any entity that did not apply for a license and continues activities will be investigated and there will be consequences for such actions.”
This is as regards some of the business models of approved firms which include advisory services, exchanges, payment gateways, crypto-to-crypto and crypto-to-fiat-conversion, crypto asset arbitrage, tokenisation, provision of index-based products, and wallet services.
This action reflects South Africa’s ongoing efforts to loosen its regulations surrounding cryptocurrencies. The Crypto Assets Regulatory Working Group was founded by the SARB, the FSCA, South African Revenue Services (SARS), and the FIC in November 2018, marking the first move toward liberalizing the country’s cryptocurrency laws.
The working group released a position paper [pdf] in July 2021 that included suggestions for updated South African laws, regulations, and policies regarding cryptocurrency assets. Guidelines regarding the servicing of cryptocurrency clients by banks and other financial institutions were released by SARB in August of 2022.
The top bank specifically cautioned the establishments against turning away cryptocurrency customers.
Moreso, continuous monitoring of licensed firms are not in doubts.