South Africa to Require Licenses for Crypto Exchanges
South Africa is poised to lead Africa in implementing licenses for cryptocurrency exchanges. Around 60 digital asset platforms are anticipated to be granted permits by the end of this month, ensuring compliance with regulatory standards. In an interview with Bloomberg, the Financial Sector Conduct Authority (FSCA) Commissioner disclosed this latest development.

The FSCA has set a deadline of November 30 for exchanges to submit their licensing applications. Failure to adhere to this requirement may lead to regulatory penalties. The application process attracted over 300 crypto-asset providers seeking official approval.

In a strategic move, the FSCA has opted to bring crypto exchanges under the umbrella of 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 capacity, aligning with the FAIS Act’s rigorous ‘fit-and-proper’ criteria.

This regulatory advancement coincides with Bitcoin’s remarkable surge in value, hitting a record high of $73,664. The upward trajectory of Bitcoin reflects a trend of increasing investments and interest in cryptocurrencies, highlighted by unprecedented investments in spot Bitcoin ETFs.

With the implementation of the new regulatory framework, consumers interacting with crypto exchanges will benefit from enhanced protections and avenues for recourse that were previously unavailable. The FSCA’s oversight in enforcing the standards of the FAIS Act ensures a safer environment for both operators and consumers in the digital asset realm.

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