On Tuesday, South Africa’s Financial Sector Conduct Authority gave the nod to 59 cryptocurrency companies to operate.
The financial institutions market conduct regulator received 355 applications, approved 59, and is still considering 262 others, according to Techpoint Digest.
These licenced companies deal with several aspects of cryptocurrency, including payments processing, exchange management, advisory services, and converting fiat to cryptocurrency.
The FSCA is on the trail of anyone operating cryptocurrency operations without a licence. Felicity Mabaso, one of its big shots, made it clear there’ll be consequences.
In November 2018, the major players — South African Reserve Bank (SARB), FSCA, South African Revenue Services (SARS), and Financial Intelligence Centre (FIC) — established the Crypto Assets Regulatory Working Group.
In July 2021, it released a position paper with some solid recommendations on how to handle cryptocurrency.
Then, in August 2022, the SARB issued guidelines for banks dealing with cryptocurrency clients, essentially telling them not to slam the door in their faces.
And, just last October, the FSCA officially classified crypto assets as financial products, putting them under its watchful eye. It began issuing licences in June 2023, and here we are now, 59 firms getting the thumbs up!