South Africa Leads with 59 Crypto Licenses Issued

South Africa Leads with 59 Crypto Licenses Issued

South Africa leads a trend in crypto regulation, with 59 licenses

South Africa has a systematic and proactive approach to cryptocurrency law. The Financial Sector Conduct Authority (FSCA) oversees cryptocurrencies in accordance with the Financial Advisory and Intermediary Services Act; the nation has not outright outlawed them.

Cryptocurrency service providers have to comply with Anti-Money Laundering and Counter-Terrorist Financing regulations by registering with the Financial Intelligence Centre. This legislative framework seeks to promote innovation and industry growth in addition to safeguarding investors and creating a secure environment for cryptocurrency transactions.

South Africa, the most industrialized country in Africa is making progress in regulating the asset class, and on Wednesday an official stated that the financial conduct agency has authorized 59 Crypto Licenses.

The Financial Sector Conduct Authority (FSCA) in 2022 assertedthat crypto assets were to be classified as financial products. This declaration underscored the imperative for regulation to shield financial consumers from risks and counteract money laundering and terrorism financing.
The Financial Surveillance Department of the central bank is also given express authority to mandate that South African crypto trading platforms disclose transactions involving cryptocurrency assets as a result of regulating the assets.
Felicity Mabaso, a divisional executive at the Financial Services and Consumer Authentication Authority (FSCA), stated at a financial industry conference that as of Tuesday, the authority had already granted 59 out of 355 license applications. In progress are about 262 applications.

After receiving a license, the authorized service providers will be monitored continuously, and inquiries into unlicensed individuals offering financial services connected to cryptocurrencies will start, she continued.

Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.

Related Stories

No stories found.
Analytics Insight