South Africa's Regulatory Drive: Licensing 60 Crypto Firms Signals Industry Oversight

In a significant development, South Africa is set to become a pioneering force in Africa's cryptocurrency sector by planning to license approximately 60 cryptocurrency firms by the end of March 2024. This strategic initiative aims to address the increasing need for regulatory oversight in the wake of several high-profile crypto scams that have plagued the country, resulting in substantial financial losses. Spearheaded by the Financial Sector Conduct Authority (FSCA), the licensing process involves scrutinising over 300 applications from crypto asset providers seeking official approval. FSCA Commissioner Unathi Kamlana has outlined a phased approach to processing these applications, leveraging the existing regulatory framework provided by the Financial Advisory and Intermediary Services (FAIS) Act to ensure the integrity and competence of financial services providers. The licensing period, which commenced on June 1 and concluded on November 30, 2023, allowed existing crypto platforms to operate while undergoing necessary compliance checks. However, failure to secure a license by the deadline could result in regulatory enforcement measures by the FSCA.