South Africa’s Financial Sector Conduct Authority (FSCA) has revealed that it has approved 59 cryptocurrency licenses which includes cryptocurrency exchanges, cryptocurrency managers, and other applicants looking to serve their local population. News has it that the FSCA got 493 applications, of which 199 were completed, while 262 were tagged pending.

The FSCA’s endorsement of these licenses has been described as a dedication to providing a transparent and safe atmosphere for activities linked to cryptocurrencies in South Africa. By receiving regulatory permission, these platforms show that they abide by the law and regulations, which builds credibility and trust among stakeholders and users.

Data from PYMNTS TV says Africa has published that the continent with the fastest and highest blockchain adoption globally, recording a 1200% increase in two years. With a focus on market integrity, investor protection, and Anti Money Laundering (AML) compliance, this framework seeks to advance responsible growth and innovation in the cryptocurrency industry.

The nation is setting itself up to take advantage of the enormous potential of digital assets while defending the interests of investors and consumers by welcoming innovation and enacting progressive regulations. 

 Luno CEO Praise FSCA, FSCA Boss Speaks 

Luno has led the charge in promoting compliance and regulatory clarity for the nation’s cryptocurrency sector. Marcus Swanepoel, the CEO of the Luno, praised the FSCA’s decision to approve the 59 license applications and emphasized the significance of regulation in creating a long-lasting and inclusive cryptocurrency environment.

Apart from overseeing cryptocurrency platforms, the FSCA has been actively collaborating with relevant parties to create a complete regulatory framework for digital assets within the borders of South Africa. FSCA boss, while talking to Bloomberg in March, says that there are over 300 cryptocurrency asset companies hoping for approval.

According to Unathi Kamlana, the FSCA Commissioner, in an interview with Bloomberg, revealed that they are currently working on more applications. They are doing so in phases, considering the number of applicants received. Stating the license approval criteria, the commission says every applicant must meet the requirements, including customer protection and rule compliance. 

South Africa Positioning for Huge Cryptocurrency Investment, Luno Makes Announcement 

Explaining the situation, Technxt’s David Afolayan stated that removing legislative obstacles and fostering confidence will position South Africa to become a significant player in the global cryptocurrency ecosystem, spurring investment, innovation, and economic expansion in the digital era.

Luno and Jaltech Exchange have issued a public statement on the development, stating they have been approved. Jaltech has also announced early last week that it is one of the few companies that qualifies for the Cryptocurrency Asset Service Provider (CASP) license.

Part of the requirements for approval includes providing timely business information, including detailed information about the company’s directors, members, partners, and trustees. Others include that applicants or their representatives must not have a professional or legal misappropriation and must not have any current or past investigation that has resulted or is likely to result in conviction by the authorities. 

FSCA Publish Data of Applicants, Records  493 Applications 

South Africa’s financial regulating authority, FSCA, has slated November 30th as the deadline for any interested cryptocurrency exchanges to submit their applications for review or face prosecution from the law enforcement unit. The deadline was November 2022, only to complete the review process recently.

Before now, the South African Reserve Bank (SARB) didn’t approve cryptocurrency as a national means of exchange; rather, it has mere financial assets. The FSCA has classified digital assets as financial items and has always treated them as one.

A survey by the FSCA in 2017 shows that 47% of South Africans have either invested in cryptocurrency or are planning to invest. However, South Africa’s market share of Google Bitcoin wallets downloaded so far recorded a 100% increase in two years. Meanwhile, in 2020, the Luno exchange stated that South Africa was among the countries with the highest cryptocurrency ownership, recording 13%.