The Financial Sector Conduct Authority (FSCA) in South Africa has recently approved 59 license applications from cryptocurrency platforms, marking a significant step towards regulation in the country. This move will ensure that these platforms operate within the current legal framework.

According to FSCA divisional executive Felicity Mabaso, there are currently 262 licensing applications from crypto exchanges in the processing stage, out of a total of 355 applicants. The 59 approvals were granted on March 12, with all companies applying under a deadline of Nov. 30, 2023. These platforms will be regulated under the Financial Advisory and Intermediary Services Act (FAIS), providing new customer protections and enabling regulators to take enforcement actions.

The South African Reserve Bank (SARB) Financial Surveillance Department will be responsible for supervision under the FAIS Act. FSCA Commissioner Unathi Kamlana emphasized the importance of discovering and addressing any regulatory gaps that may arise during the licensing and supervision process.

South Africa is leading the way as the first African country to license crypto exchanges. Plans for a separate regulatory framework for cryptocurrencies were initially discussed in 2021 and were expected to be finalized in 2022. Ultimately, cryptocurrency was classified as a financial product by the FSCA, aligning with the country’s evolving regulatory landscape.

In related news, the South African National Treasury announced a policy change in its annual budget review to include stablecoins in the definition of crypto assets, reflecting a broader approach to regulating the digital asset space.

This development underscores the growing importance of regulatory oversight in the cryptocurrency industry and highlights South Africa’s commitment to fostering a safe and transparent environment for crypto investors. Stay tuned to Global Crypto News for more updates on the evolving crypto landscape.

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