South Africa's FSCA Approves 59 Licenses for Crypto Businesses Amid Regulatory Push

South Africa's Financial Sector Conduct Authority (FSCA) has taken a significant step forward in the regulation of cryptocurrency businesses, with the approval of 59 operating licenses, an official announced on Wednesday. This move reflects Africa's most industrialized economy's efforts to establish regulatory frameworks around this burgeoning asset class.

In a landmark decision in 2022, the FSCA categorized crypto assets as financial products, underscoring the necessity for regulation to safeguard financial consumers against risks such as money laundering and terrorism financing.

Felicity Mabaso, a divisional executive at the FSCA, revealed during a financial sector conference that the authority had processed a total of 355 license applications. Of these, 59 have been granted approval as of Tuesday, with 262 still in various stages of processing.

Crucially, these authorized service providers will be subjected to continuous supervision post-licensing. Mabaso emphasized that investigations into individuals conducting crypto-related financial services without proper authorization will commence as part of the regulatory enforcement measures.

Regulation of crypto assets also grants explicit powers to the central bank's Financial Surveillance Department, enabling it to mandate South African crypto asset trading platforms to report transactions involving cryptocurrencies.

This development underscores South Africa's commitment to fostering a secure and transparent environment for crypto-related activities, aligning with global efforts towards regulatory clarity in the cryptocurrency space.

By fLEXI tEAM