On July 2, South Africa’s financial services regulator, the Financial Sector Conduct Authority (FSCA), announced the approval of 63 more licenses for crypto asset service providers (CASPs). Out of a total of 383 applications received, only five were declined. It is important to note that these approvals do not equate to the recognition of crypto assets as legal tender or ‘cryptocurrency’ in South Africa.
Withdrawal of 80 License Applications
The FSCA, South Africa’s financial regulatory authority, has approved licenses for 63 additional crypto asset service providers, raising the total number of licensed CASPs to 138.
In an official statement released on July 2, the FSCA disclosed that it had received 383 applications from entities wishing to offer crypto-related services. Of these, five applications were rejected for not meeting the local financial services law’s fit and proper requirements. Additionally, 80 applications were voluntarily withdrawn by applicants after consultations with the FSCA. The FSCA clarified that entities whose applications were rejected could reapply if they meet the necessary criteria. Until they are approved, these entities are prohibited from conducting any CASP-related activities as defined under the Financial Advisory and Intermediary Services (FAIS) Act. The FSCA continues to process the remaining applications.
In the interim, they are prohibited from undertaking any CASP-related activities as defined under the FAIS Act. Any institution or individual found to be engaging in such activities without authorization will face regulatory actions by the FSCA.
Moreover, the FSCA’s statement emphasized that the approvals do not signify that South Africa recognizes crypto assets as legal tender or ‘cryptocurrency.’ The country’s central bank acknowledges crypto assets as currency, and any media reports suggesting otherwise are incorrect.
