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South Africa’s Financial Sector Conduct Authority (FSCA) has approved 59 license applications from cryptocurrency platforms, according to Reuters. They will be regulated under current law.
The FSCA has 262 licensing applications from crypto exchanges in processing, out of a total of 355 applicants, Reuters <a href="https://www.reuters.com/world/africa/south-africas-financial-conduct-regulator-approves-59-crypto-licences-2024-03-13/" target="_blank" rel="noopener noreferrer nofollow">said</a>, citing FSCA divisional executive Felicity Mabaso. The 59 approvals were granted on March 12. The crypto companies have <a href="https://www.bloomberg.com/news/articles/2024-03-13/south-africa-poised-to-license-60-crypto-platforms-by-month-end" target="_blank" rel="noopener noreferrer nofollow">applied</a> under a deadline of Nov. 30, 2023, according to Bloomberg, and will be regulated under the Financial Advisory and Intermediary Services Act (FAIS).
The act will provide new customer protections and allow regulators to take enforcement actions. It authorizes the South African Reserve Bank (SARB) Financial Surveillance Department to conduct supervision. FSCA Commissioner Unathi Kamlana told Bloomberg:
<blockquote>
 “As we license and supervise, we will discover that perhaps there are gaps that cannot be closed by the existing regulatory framework, the FAIS Act. And we might need to build on that as we discover what those are.”
</blockquote>
South Africa is reportedly the first African country to license crypto exchanges. It had <a href="https://cointelegraph.com/news/south-africa-to-revise-national-policy-position-on-cryptocurrency" rel="noopener noreferrer nofollow">considered creating a separate</a> regulatory framework for crypto when it first began the regulatory process in 2021. Those plans were still in place in 2022, and the regulations <a href="https://cointelegraph.com/news/experts-weigh-in-on-new-crypto-regulations-in-south-africa" rel="noopener noreferrer nofollow">were expected to be finalized</a> that year. The SARB stated later that year that cryptocurrency would <a href="https://cointelegraph.com/news/bitcoin-not-a-currency-south-africa-to-regulate-crypto-as-financial-asset" rel="noopener noreferrer nofollow">be declared to be a financial asset</a>, rather than currency, in regulations due out in 2023. In the end, it was <a href="https://cointelegraph.com/news/south-africa-declares-crypto-to-be-a-financial-product-subject-to-financial-services-law" rel="noopener noreferrer nofollow">declared a financial product</a> by the FSCA.
Related: <a href="https://cointelegraph.com/news/on-freedom-day-bitcoin-gives-south-africans-a-stake-in-their-financial-future" rel="noopener noreferrer nofollow">On Freedom Day, Bitcoin gives South Africans a stake in their financial future</a>
In July, the FSCA commissioner reportedly said 20 applications <a href="https://cointelegraph.com/news/crypto-exchange-licences-south-africa-by-year-end" rel="noopener noreferrer nofollow">had been received ahead</a> of the November deadline and crypto exchanges operating without licenses after the deadline would be subject to enforcement actions such as fines and closure. In December, the FSCA said it <a href="https://cointelegraph.com/news/south-african-regulator-license-36-crypto-companies-december" rel="noopener noreferrer nofollow">had received 128 applications</a>&nbsp;and 72 of them would be considered between December and March 14.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-03/5e4fc425-794b-4b44-9570-330aef139660.png">
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 Source: Bloomberg @business on&nbsp;
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In February, the South African National Treasury said in its annual budget review that it would <a href="https://cointelegraph.com/news/south-africa-stablecoins-blockchain-digital-payments" rel="noopener noreferrer nofollow">implement a policy change</a>&nbsp;to include stablecoins in its definition of crypto assets.
Magazine: <a href="https://cointelegraph.com/magazine/bitcoin-senegal-why-how-african-country-using-btc/" rel="noopener noreferrer nofollow">Bitcoin in Senegal: Why is this African country using BTC?</a>

South Africa begins licensing crypto exchanges as applications pile up

Cointelegraph

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