South Africa is planning to license approximately 60
cryptocurrency platforms by the end of March. According to a report by
Bloomberg, this initiative by the Financial Sector Conduct Authority (FSCA)
underscores the nation’s proactive approach towards regulating the burgeoning
crypto sector.
The FSCA revealed that the response exceeded
expectations, with more than 300 crypto-asset providers seeking regulatory
approval. The deadline for application for the licenses is set for November 30.
Rather than developing a standalone regulatory
framework for crypto operators, the FSCA has opted to leverage the existing
Financial Advisory and Intermediary Services Act.
By bringing crypto exchanges under the purview of this
regulation, South Africa aims to bolster consumer protections and
accountability within the sector. Notably, the new guidelines offer a recourse
in case of breaches or misconduct by the crypto platform’s operators. This regulatory oversight aims to instill confidence
among investors and mitigate potential risks associated with crypto trading.
South Africa will license about 60 cryptocurrency platforms by the end of the month, placing it among the first nations on the continent to oblige digital-asset exchanges to have permits to operate https://t.co/zRIB7femKd
— Bloomberg (@business) March 13, 2024
Future Regulatory Developments
Commissioner Kamlana acknowledged that while the FAIS
Act serves as a robust foundation for crypto regulation, ongoing supervision
may reveal gaps that necessitate additional measures.
As the FSCA continues to license and monitor crypto
platforms, it remains open to refining regulatory frameworks to address
emerging challenges effectively.
South Africa is planning to license approximately 60
cryptocurrency platforms by the end of March. According to a report by
Bloomberg, this initiative by the Financial Sector Conduct Authority (FSCA)
underscores the nation’s proactive approach towards regulating the burgeoning
crypto sector.
The FSCA revealed that the response exceeded
expectations, with more than 300 crypto-asset providers seeking regulatory
approval. The deadline for application for the licenses is set for November 30.
Rather than developing a standalone regulatory
framework for crypto operators, the FSCA has opted to leverage the existing
Financial Advisory and Intermediary Services Act.
By bringing crypto exchanges under the purview of this
regulation, South Africa aims to bolster consumer protections…
