South Africa’s Financial Sector Conduct Authority (FSCA) has given its approval to 59 license applications from cryptocurrency platforms, as reported by Reuters. These platforms will now be subject to regulation under existing laws. The FSCA has received a total of 262 licensing applications from crypto exchanges, out of a pool of 355 applicants, according to FSCA divisional executive Felicity Mabaso. The 59 approvals were granted on March 12. Bloomberg states that the crypto companies submitted their applications by the deadline of November 30, 2023, and will now be regulated by the Financial Advisory and Intermediary Services Act (FAIS). This act will provide enhanced customer protections and grant regulators the ability to take enforcement actions. The South African Reserve Bank (SARB) Financial Surveillance Department will be responsible for overseeing these platforms. FSCA Commissioner Unathi Kamlana informed Bloomberg that South Africa is the first African country to license crypto exchanges. Initially, the country had considered creating a separate regulatory framework for cryptocurrencies, but those plans were still in place in 2022 when the regulatory process began. The regulations were expected to be finalized that year. However, in 2023, the SARB announced that cryptocurrencies would be classified as financial assets, rather than currencies, in the forthcoming regulations. Ultimately, the FSCA has declared cryptocurrencies to be financial products. In July, the FSCA commissioner revealed that 20 applications had been received prior to the November deadline, and any crypto exchanges operating without licenses after the deadline would face enforcement actions, such as fines and closure. In December, the FSCA announced that it had received 128 applications, with 72 of them set to be reviewed between December and March 14. The South African National Treasury stated in its annual budget review in February that it would implement a policy change to include stablecoins in its definition of crypto assets.
Crypto exchange license applications flood South Africa as government initiates licensing process