South Africa Approves 248 Crypto Firms As Service Providers
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
South Africa’s Financial Sector Conduct Authority (FSCA) revealed earlier this month that it had approved licenses for 248 companies to operate as crypto asset service providers. The regulator denied nine applications, while decisions on 56 more applications are still pending.
The regulator stated that the licensing process began on June 1, 2023, and attracted 420 applications. Out of these, 106 applicants withdrew their submissions voluntarily after engaging with the regulator. According to the update, many of these withdrawals were linked to companies that realized they could not meet the requirements.
The Declined Applications Highlight Key Issues
South Africa’s Financial Sector Conduct Authority said some applications were declined because many companies did not meet the rules under the Financial Advisory and Intermediary Services (FAIS) Act. These companies could not show they had strong plans or explain how they would run their businesses. The FSCA also said they did not give enough details about their crypto activities.
According to South Africa’s Financial Sector Conduct Authority, some applicants did not have enough knowledge or experience with cryptocurrencies. These problems were common in the applications that were not approved. The Authority said companies that it declined or those that withdrew their applications could try again later.
South Africa is one of the few African countries with strong rules for crypto businesses. Unlicensed companies cannot work unless their applications are still being checked. Companies with licenses must also pass a test by June 30, 2025. If they do not, the FSCA might take away their licenses or stop them from working.
South Africa Sees Crypto As Digital Assets But Not Legal Tender
The South African government said cryptocurrencies are digital assets that people can use for payments, investments, or other uses. However, the country’s central bank does not accept them as real money. This means people cannot officially use cryptocurrencies to pay for goods or services.
The FSCA explained that its job is to watch over crypto service companies. These are firms that give advice, help with investments, or manage money related to cryptocurrencies.
Earlier this year, the Authority acted against Banxso, a local company offering Contracts for Difference (CFD). The FSCA took away Banxso’s license because of worries about its work and risks to clients. Another group also froze the firm’s bank accounts.
According to reports, Banxso misled its clients about reinstating its license. South Africa’s Financial Sector Conduct Authority had to issue another statement to clarify the situation and warn the public about such practices. The FSCA also reminded trading signal providers operating in the country that they must have proper licenses to continue offering their services.
The South Africa’s Financial Sector Conduct Authority said it cares about keeping South Africa’s crypto market safe and fair. By allowing some companies to get licenses and giving clear rules, the country wants to bring new ideas while keeping people protected. As the exam deadline gets closer, firms with licenses must follow all rules to keep running.
