• South Africa’s financial regulator has announced that all crypto exchanges in the country will be required to obtain licenses by the end of the year.
• The Financial Sector Conduct Authority (FSCA) commissioner Unathi Kamlana stated that the agency had received approximately 20 license applications and expects more before Nov. 30 deadline.
• South Africa becomes the first country on the continent to require digital asset exchanges to obtain licenses.
South Africa Mandates Crypto Exchange Licenses
South Africa’s financial regulator has announced that all crypto exchanges operating in the country must obtain licenses by the end of this year, according to a report by Bloomberg. Financial Sector Conduct Authority (FSCA) commissioner Unathi Kamlana stated that they have received around 20 license applications so far, with more expected before a Nov. 30 deadline.
Enforcement Action for Unlicensed Exchanges
Kamlana further mentioned that if any crypto exchange continues to operate without a license after this date, then regulatory enforcement action may be taken against them, such as fines or closure of the firm. This makes South Africa the first country on the continent to require digital asset exchanges to be licensed.
Fintech Inter-Governmental Working Group
The FSCA has been involved in crypto and fintech regulations and is collaborating with an “inter-governmental fintech working group” consisting of major financial sector regulators and policymakers, including National Treasury and South African Reserve Bank (SARB).
Licensing Requirements for Individuals
According to an FSCA spokesperson, individuals providing financial services in crypto assets, excluding certain exceptions like miners and NFT service providers, must also obtain authorization from them or face regulatory action from relevant authorities.