- On July 2, the regulatory body for the financial services sector in South Africa declared that it has granted licenses to sixty-three more crypto asset service providers.
- Out of the 383 applications that the Financial Sector Conduct Authority (FSCA) has received, just five have been rejected. Notably, the approvals do not imply that crypto assets are accepted in South Africa as legal cash or “cryptocurrency.”
Retraction of 80 License Applications
The regulator of the financial services sector in South Africa, the Financial Sector Conduct Authority (FSCA), has licensed sixty-three crypto asset service providers (CASPs). With the approval of these licenses, there are now 138 CASPs licensed to provide services in South Africa.
The FSCA announced in a statement on July 2 that it had received 383 applications from organizations looking to offer services linked to cryptocurrencies.
Out of them, five applications were turned down because they didn’t adhere to the relevant fit and appropriate standards set forth by local financial services legislation. Furthermore, after interactions with the FSCA, 80 applications were voluntarily withdrawn by the applicants.
According to the FSCA, organizations whose applications are denied may submit new ones provided they fulfill the requirements. They may not, however, engage in any CASP-related activities as those terms are defined under the Financial Advisory and Intermediary Services (FAIS) Act unless authorized. The remaining applications are still being considered by the FSCA.
They are not permitted to engage in any FAIS Act-defined CASP-related activity in the interim. Any organization or individual discovered engaging in such activities without authorization will be vulnerable to FSCA regulatory action.
Meanwhile, the regulator made it clear in a statement that South Africa does not recognize crypto assets as legal cash or “cryptocurrency” as a result of the licenses. Additionally, any media claims implying differently are untrue, as the nation’s central bank recognizes cryptocurrency holdings as money.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.