South Africa's Financial Sector Conduct Authority (FSCA) has given the green light to 59 license applications from cryptocurrency platforms, as reported by Reuters. These platforms will now fall under regulatory oversight, adhering to existing laws governing financial services.
Felicity Mabaso, the head of the FSCA department, revealed that out of a total of 355 applications received, 262 were from cryptocurrency exchanges, with the 59 approvals granted on March 12. These exchanges had submitted their applications before the November 30, 2023 deadline and will operate under the Financial Advisory and Intermediary Services Act (FAIS), according to Bloomberg.
Under this bill, new customer protections will be enforced, and regulators will have the authority to take necessary enforcement actions. The South African Reserve Bank's (SARB) Financial Supervisory Authority will oversee supervision activities. Unathi Kamlana, the FSCA Commissioner, emphasized the importance of ongoing oversight, stating that as they progress through the licensing process, any gaps in the existing regulatory framework may prompt further enhancements.
South Africa marks a significant milestone as the first African nation to grant licenses to cryptocurrency exchanges. Initial regulatory discussions in 2021 considered the establishment of a separate framework for cryptocurrencies, with ongoing deliberations leading to the finalization of regulations expected in 2022. However, subsequent developments saw cryptocurrencies classified as financial products by the FSCA.
Reports indicate that the FSCA had received 20 applications by July, just ahead of the November deadline, after which unlicensed cryptocurrency exchanges would face enforcement measures, including fines and closure. By December, the FSCA had received a total of 128 applications, with 72 slated for consideration between December and March 14.
