The Financial Sector Conduct Authority (FSCA) of South Africa takes corrective measures on the part of citizens of SA by issuing licenses to 59 crypto platforms that satisfy their financial rules of conduct. According to data on News24, FSCA divisional executive Felicity Mabaso, on the day of the financial conference that we received 355 license applications, of which only 59 are approved and the remaining 262 are yet to be approved.
A New Regulatory Framework
South Africa is making waves in the cryptocurrency space with its forward-thinking approach to regulation. A new framework is in the works, and several companies have already received licences to operate in the country. While the names of these companies haven’t been disclosed, it’s expected that they include crypto exchanges and custody firms.
The Financial Sector Conduct Authority (FSCA) has been working on this new framework since 2021, intending to bring crypto assets into the mainstream. In a paper published that year, the FSCA outlined its plan to regulate crypto in a “phased and structured manner.” While the initial deadline for this framework was the end of 2022, the South African Reserve Bank (SARB) has already declared cryptocurrencies as financial assets rather than currencies.
This move is a significant step forward for the crypto industry, as it provides much-needed clarity and certainty for businesses operating in the space. The FSCA’s approach is proactive and forward-thinking, recognizing that digital assets should be treated as financial products.
Crypto adoptadoption ishe rise in South Africa
South Africa has witnessed a surge in crypto adoption in recent years, with a survey in 2017 47% of citizens had invested in cryptocurrencies. Next to this, the Bitcoin wallet downloads in the country increased by 100%.
According to a statement released in 2020 by Luno, a crypto trader, South Africa retains 13% of crypto ownership worldwide and is recognised as the third-highest.
As crypto continues to gain traction, South African companies are welcoming it with open arms. Stitch, a payments infrastructure firm, introduced “Pay with Crypto” last year, allowing customers to use cryptocurrencies for purchases. Paycorp, another company, developed the CryptoExpress app, which enables individuals to withdraw crypto in South African Rands at over 3,000 ATMs.
In a major milestone, cryptocurrency exchange Luno became one of the first firms to receive a licence from the FSCA in South Africa, allowing it to operate as a financial services provider in the country. This is a significant step forward for the crypto industry in South Africa and is expected to pave the way for further adoption and growth.
Also read: UK Updates Legislation for Stablecoins and Cryptocurrencies
