South Africa Licenses 75 Crypto Service Providers

On Monday, the Financial Sector Conduct Authority (FSCA) of South Africa announced that it has issued cryptocurrency licenses to 75 organizations so far. 

This announcement comes after multiple cryptocurrency firms asserted that they were the unique recipients of such a license. The regulatory authority distributes licenses for crypto asset service providers (CASPs) under the Financial Advisory and Intermediary Services (FAIS) Act.

The announcement reads: “The FSCA has noted various statements in the media by certain institutions indicating they are the first or only institutions currently licensed as crypto asset service providers under the Financial Advisory and Intermediary Services (FAIS) Act. For completeness, the FSCA wishes to clarify and confirm that it has, to date, approved a total of 75 institutions to be licensed as Casps.”

Entities such as Luno, Altcoin Trader, and VALR were among those granted cryptocurrency licenses. The nation saw more than 374 submissions from CASPs, but after dedicating two years to foundational efforts, only 75 have been authorized. The announcement noted that the FSCA has committed to offering ongoing updates as it processes and approves these applications.

Binance has not been included in the list of licensed crypto operators in South Africa. The company had set up its operations in the nation in July 2022. Previously, Binance had announced a discontinuation of certain services within South Africa in an effort to adhere to regulatory requirements. This decision came after the regulatory body issued warnings about the risks associated with dealing with the “Binance Group.”

The Financial Sector Conduct Authority (FSCA) stated that Binance does not have the authorization to provide any financial services or conduct business in South Africa. 

The situation aligns with the challenges Binance is facing in Nigeria, a key player in the African cryptocurrency scene. The company has paused its operations there due to regulatory obstacles. Complicating matters further, one Binance executive was arrested, and another is facing extradition from Kenya after fleeing from Nigerian authorities.

The Nigerian Central Bank has charged the cryptocurrency exchange with conducting over $26 billion worth of untraceable transactions. Furthermore, Nigeria’s Securities and Exchange Commission has declared Binance’s operations illegal in the country. 

Richard Teng, the CEO, recently revealed that the firm is in close collaboration with the Nigerian government to address these problems.

Disclaimer

This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.