FSCA to Evaluate 36 of 128 Crypto Service Application; Mandates Licensing by Year-end
Summary:
The Financial Sector Conduct Authority (FSCA) in South Africa has received 128 applications from cryptocurrency service providers, only 36 of which will be discussed in a December meeting. The FSCA's evaluation considers a range of factors including customer identification and data security. The FSCA released a study showing 60% of all cryptocurrency transactions involves "unbacked crypto assets". It also found the majority of providers earn between $53,000 to $2.7 million annually. The highest monthly transaction record occurred in November 2022, reaching 8 billion rand (approximately $427 million). The FSCA has mandated all providers to obtain a license by year's end, threatening fines or closure for non-compliance.
The prime financial authority of South Africa, the Financial Sector Conduct Authority (FSCA), has received a total of 128 applications from cryptocurrency service asset providers (CASPs), out of which only 36 will be discussed in the upcoming meeting in December. This information was made public on November 30 by the South African news medium My Broadband. It is reported that the FSCA will evaluate 36 license requests at the Licensing Executive Committee session on December 12. An additional 22 proposals are scheduled for consideration on February 13 of next year, with the final 14 to be examined on March 12. The fate of the remaining applications is still unclear as declared by the Authority, whose evaluation approach includes a comprehensive examination of customer identification procedures, data security, cyber threat management, conflict of interest control, complaint resolution, and management of credit counterparty risks. FSCA also released its "Crypto Assets Markets Study" for 2023 on the same day, November 30. According to the research, 60% of all cryptocurrency transactions in South Africa involved "unbacked crypto assets", excluding stablecoins, non-fungible tokens, and certain centrally issued coins. The study further revealed that the average crypto service provider in the country earns annual revenue between 1 and 50 million South African rand ($53,000 to $2.7 million), with only 8% of all CASPs grossing over 100 million rand ($5.4 million). It is also noted that the South African cryptocurrency market recorded its highest monthly transaction in November 2022, with a record-breaking 8 billion rand (approximately $427 million). The FSCA issued a warning in July 2023, mandating all crypto service providers in the country to acquire a license by the end of the year, with potential penalties including fines or closure for non-compliance.
Published At
12/4/2023 8:43:57 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.