South Africa achieves regulatory milestone by granting licenses to 60 crypto exchanges
South Africa is on track to become one of the pioneering nations in Africa to require licenses for cryptocurrency exchanges. It is expected that around 60 digital asset platforms will receive their permits by the end of this month, ensuring that they operate within regulatory guidelines. The Commission of the Financial Sector Conduct Authority (FSCA) disclosed this information in an interview with Bloomberg.
The FSCA has set a deadline of November 30 for exchanges to submit their licensing applications. Failure to comply could result in regulatory sanctions. Over 300 crypto-asset providers came forward to seek official approval during the application process.
In a strategic move, the FSCA has decided to include crypto exchanges under the existing Financial Advisory and Intermediary Services (FAIS) Act. This decision means that crypto platforms will be assessed based on transparency, ethical conduct, competency, and operational ability, aligning with the FAIS Act’s rigorous ‘fit-and-proper’ requirements.
This regulatory milestone coincides with a significant increase in the value of Bitcoin, which reached an all-time high of $73,664. The rise of Bitcoin reflects a growing trend of investment and interest in cryptocurrencies, as highlighted by unprecedented investments in spot Bitcoin ETFs.
With the new regulatory framework in place, consumers engaging with crypto exchanges will benefit from enhanced protections and previously unavailable avenues for recourse. The FSCA’s authority to enforce the standards set by the FAIS Act ensures a safer environment for operators and consumers in the digital asset space.
