South Africa's FSCA Approves 59 Cryptocurrency Licenses, More Under Review
Summary:
The Financial Sector Conduct Authority (FSCA) in South Africa has approved 59 cryptocurrency platform licenses, with an additional 262 applications still under review. The licensed platforms will be regulated under the country's Financial Advisory and Intermediary Services Act (FAIS). FSCA Commissioner Unathi Kamlana suggested that supervision might reveal gaps in the existing regulatory framework which would need to be addressed. The South African Reserve Bank (SARB) will release regulations by the end of 2023, outlining cryptocurrency as a financial asset instead of currency.
The Financial Sector Conduct Authority (FSCA) in South Africa has granted approval to 59 cryptocurrency platforms, as reported by Reuters. These platforms will now operate under existing regulation. FSCA is processing a further 262 applications from crypto exchanges out of a total 355 applications, according to Felicity Mabaso, FSCA divisional executive. March 12 was the date when 59 approvals were issued. The crypto firms had until November 30, 2023 to submit their applications, according to Bloomberg, and will be governed by the Financial Advisory and Intermediary Services Act (FAIS). This Act is set to enhance customer protection measures, authorize regulatory enforcement actions and approve the Financial Surveillance Department of the South African Reserve Bank (SARB) to oversee operations. In conversation with Bloomberg, FSCA Commissioner Unathi Kamlana said that identifying limitations within the existing regulatory framework is possible as they license and supervise. South Africa is believed to be the first African country to license crypto exchanges. The country has been contemplating a distinct regulatory framework for cryptocurrency since initiating the regulation process in 2021, which is still ongoing in 2022. By the end of 2023, regulations announcing cryptocurrency as a financial asset rather than currency are to be released by the SARB. Ultimately, the FSCA declared cryptocurrency a financial product. During July, prior to the November deadline, FSCA Commissioner stated that 20 applications had been procured and crypto exchanges operating without licenses post-deadline could face enforcement actions, including fines and shutdowns. In December, the FSCA asserted that it had received 128 applications, with 72 due for consideration between December and March 14. In February, South African National Treasury stated in its annual budget review that stablecoins would be incorporated in their definition of crypto assets.
Published At
3/13/2024 11:10:59 PM
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