Stablecoin

Prime

Block

James

Leading crypto service provider in Africa, <a href="http://www.yellowcard.io/" target="_blank" rel="noopener">Yellow Card</a> has secured a Crypto Asset Service Provider (CASP) licence in South Africa. This was disclosed by the company in a statement seen by Technext. The license, issued by South Africa’s Financial Sector Conduct Authority (FSCA) would allow the blockchain-based company to provide crypto and digital assets services in South Africa.&nbsp; 
Speaking about the significant accomplishment, Yellow Card’s co-founder and CEO, Chris Maurice, said securing the licence reflects the company’s dedication while underscoring its commitment to its customers. 
“The CASP licence underscores Yellow Card’s commitment to its customers in South Africa and regulatory compliance across the continent. This achievement reflects our dedication to providing secure, compliant and transformative solutions for our customers both in South Africa and across Africa,” he said. 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full">
 <img loading="lazy" decoding="async" width="1000" height="1000" src="https://technext24.com/wp-content/uploads/2023/01/F650DB74-CFBA-49AB-B7BB-EDA9C8D433C0.jpeg" alt="Chris Maurice, CEO of Yellow Card" class="wp-image-174366">
 <figcaption class="wp-element-caption">
 Chris Maurice, CEO of Yellow Card
 </figcaption>
 </figure>
</div> 
This development comes just a month after Yellow Card closed a significant Series C round. The round was led by Blockchain Capital and supported by Polychain Capital, Third Prime Ventures, Castle Island Ventures, Block Inc., Galaxy Ventures, Blockchain Coinvestors, Hutt Capital and Winklevoss Capital. 
Speaking with Technext at the time, Regional Manager, West Africa, Uzoma James said the investment strengthens the company’s position as a major player in the African crypto space. 
“This recent investment really strengthens Yellow Card’s position as a significant player in the blockchain financial space, particularly in Africa. It allows us to enhance our services and expand our reach, which is crucial as we aim to provide accessible financial solutions,” Uzoma said. 
<h4 id="south-africa-done-will-nigeria-be-next-for-yellow-card" class="wp-block-heading">South Africa done, will Nigeria be next for Yellow Card?</h4> 
Securing a Crypto Asset Service Provider (CASP) licence in South Africa at this time is no mean feat. This is because there has been a long-running battle between the South African regulator and crypto companies operating in the country. While crypto companies wanted a separate framework, the government did not, opting instead to regulate them under the existing Financial Advisory And Intermediary Services Act. 
The battle ended with the authorities mandating crypto companies to obtain regulatory licenses under the Act or be kicked out of the country. As of November 2023, 128 crypto companies had applied for licenses to operate in the country. Of this number, only 60 were initially awarded in March 2024, including Jaltech and Luno, the only two platforms to make their license acquisitions public. 
And now, Yellow Card which launched in South Africa has joined the fray. The company currently operates in 19 other African countries, including Nigeria, the leading crypto market on the continent where it is yet to be licensed.&nbsp; 
<figure class="wp-block-image aligncenter size-full">
 <img loading="lazy" decoding="async" width="800" height="400" src="https://technext24.com/wp-content/uploads/2024/11/Yellow-Card-licensed.png" alt="Yellow Card secures license to provide crypto asset services in South Africa
" class="wp-image-240114">
</figure> 
Just like South Africa, the Nigerian crypto space has long been locked in a regulatory chokehold with the government wielding the long stick against individuals and companies operating in the space. This led to many of them leaving the country or continuing their operations without approval, risking clampdown and prosecution. 
Recently, the Securities and Exchange Commission (SEC) began the process of regulating the space. This is intended to be done by granting an “Approval-in-Principle” under the Accelerated Regulatory Incubation Program (ARIP) and a models and technology testing program called the Regulatory Incubation (RI) Program. 
Following this, two crypto companies, Quidax and Busha were granted approvals in principles under the ARIP. Yellow Card has a strong focus on becoming the next as its regional manager told Technext that the company would be looking to increase its participation in the Nigerian ecosystem. 
“With the Nigerian government easing restrictions on the crypto space, it makes sense that Yellow Card would look to get more involved. We’re definitely looking to increase our participation in the ecosystem. For one, we would actively pursue regulatory approval to operate as a licensed business in Nigeria. This would enhance our credibility and allow us to offer more comprehensive services,” Uzoma James said. 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full">
 <img loading="lazy" decoding="async" width="1120" height="630" src="https://technext24.com/wp-content/uploads/2024/01/IMG_3339.jpeg" alt="The Financial Sector Conduct Authority (FSCA)" class="wp-image-225585">
 <figcaption class="wp-element-caption">
 The Financial Sector Conduct Authority (FSCA)
 </figcaption>
 </figure>
</div> 
Stablecoin adoption is surging throughout Africa, with sub-Saharan Africa having the highest adoption rate in the world at 9.2%. In South Africa alone, where the number of total users of crypto assets is estimated to amount to 5.8 million people, stablecoins have experienced growth of 50% month over month since October 2023, displacing Bitcoin as the country’s most popular cryptocurrency.&nbsp; Yellow Card is excited to play a pivotal role in this financial revolution in South Africa.&nbsp; 
Yellow Card, which has facilitated over US$3 billion in transactions in the last several years, says it is committed to leading the charge in making digital assets accessible and secure for businesses across Africa. With the recent licensing and funding, the company plans to expand its B2B offerings by enhancing its stablecoin rails, upgrading infrastructure, and advancing its B2B API and Widget. These efforts will empower businesses with seamless solutions for liquidity management and their general operations. 
See also: <a href="https://technext24.com/2024/10/21/yellow-card-regulatory-approval-nigeria/#google_vignette">Yellow Card to ‘actively’ pursue regulatory approval in Nigeria following $33m raise</a>

Yellow Card secures licence to provide crypto asset services in South Africa

Technext.ng

Other articles published on Nov 20, 2024

Hoth Therapeutics Allocates $1M to Bitcoin Amid Rising Institutional Adoption

$100K Bitcoin next? No euphoria ‘encouraging’ as BTC price breaks new highs

OpenSea Unveils Major Upgrade to NFT Marketplace, Set to Launch in December

Archax Adds State Street and Fidelity Funds to Tokenized Offerings

Almost 15 Billion Shiba Inu (SHIB) in 24 Hours: Are Whales Ready?

Is It Too Late To Buy MOODENG? MOO DENG Price Soars 109% And This Might Be The Next Crypto To Exp...

Join our free newsletter for daily crypto updates!