South Africa grants crypto licences to 248 companies with 56 more pending
South Africa approves 248 crypto licenses, tightening oversight on digital asset services
South Africa’s Financial Sector Conduct Authority (FSCA) has approved licenses for 248 crypto asset service providers (CASPs), signaling progress in the country’s regulatory oversight of cryptocurrencies.
The regulator also rejected nine applications and is reviewing 56 more, out of 420 applications received since the licensing process began on June 1, 2023.
Stricter Rules for Crypto Compliance
The FSCA revealed that 106 firms withdrew their applications voluntarily after engaging with the regulator. The primary reasons for rejections were failure to meet fit and proper requirements under the FAIS Act, lack of operational capability, and incomplete business models. Many firms also failed to demonstrate sufficient knowledge and experience in handling cryptocurrencies.
Firms with rejected or withdrawn applications can reapply once they fully comply with licensing standards. Existing license holders must also meet regulatory examination requirements by June 30, 2025, or risk suspension or license withdrawal.
South Africa’s Push for Crypto Oversight
South Africa has positioned itself as one of the few African nations with a clear regulatory framework for cryptocurrencies. While crypto is not recognized as legal tender by the central bank, it is treated as a digital asset for payments, investments, and utility purposes.
The FSCA clarified that its oversight is limited to financial services related to crypto assets, including advisory, intermediary, and investment management services. Regulators emphasized that unlicensed firms cannot operate, ensuring tighter controls as the industry grows.
With regulatory scrutiny increasing globally, South Africa’s structured approach could set a regional precedent for managing cryptocurrency risks and growth.
Recently we wrote, that South Korea is witnessing an unprecedented wave of cryptocurrency adoption, with over 610,000 new investors entering the market in November 2024.
