South Africa Approves 63 New Crypto License Applications, Bringing Total to 138 – BitKE

The Financial Sector Conduct Authority of South Africa has approved a further 63 licence applications, bringing the number of CASPs authorised in South Africa to 138.

On 22 April 2024, the FSCA confirmed that it had, at that point, approved a total of 75 institutions to obtain the Crypto Asset Service Provider (CASP) license, while continuing to receive and consider new and existing CASP applications.

“The total number of applications received to date is 383, of which five were rejected. A further 80 applications were voluntarily withdrawn by applicants following engagements with the FSCA on the appropriateness of their business and operating models. The remaining applications continue to be assessed,” the organisation said in a press release.

The main reasons behind waste include:

• Failure to provide clear and comprehensive business plans and business model descriptions describing cryptocurrency-related activities
• Companies were also rejected because they were unable to demonstrate the required knowledge and practical experience in cryptocurrencies.

FSCA classified cryptocurrencies as financial products requiring regulatory oversight in 2022, becoming the first African country to do so. According to the authority, this is aimed at protecting consumers from the inherent risks associated with the cryptocurrency market, such as fraud and money laundering.

However, the body reiterated that its licensing powers are limited to authorizing and supervising CASPs only to the extent that they provide financial services related to cryptocurrencies, as defined by the Financial Advisory and Intermediary Services (FAIS) Act.

This authorization does not include the recognition of cryptocurrencies as legal tender or “cryptocurrency”. The South African Reserve Bank does not currently recognize cryptocurrencies as currency. Any media reports implying otherwise are therefore incorrect.

The full list of 138 authorised CASPs is available on the FSCA website via this link: Approved List of Cryptocurrency Service Providers.

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