South Africa’s financial services industry regulator announced on July 2 that it had approved an additional 63 crypto asset service provider license applications. The Financial Sector Conduct Authority (FSCA) has received a total of 383 applications, with only five being declined. Notably, the approvals do not mean crypto assets are recognized as a legal form of tender or ‘ cryptocurrency’ in South Africa.
South Africa Approves 63 Crypto Asset Service Provider License Applications
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80 License Applications Withdrawn
The Financial Sector Conduct Authority (FSCA), South Africa’s financial services industry regulator, has issued 63 licenses to crypto asset service providers (CASPs). These approved licenses bring the total number of CASPs licensed to offer their services in South Africa to 138.
In a statement released on July 2, the FSCA reported that it has received 383 applications from entities seeking to provide crypto-related services. Of these, five applications were rejected for failing to meet the applicable fit and proper requirements under local financial services law. Additionally, 80 applications were voluntarily withdrawn by applicants following engagements with the FSCA.
The FSCA clarified that entities with rejected applications can re-apply if they meet the set criteria. However, until approved, they may not undertake any CASP-related activities as defined under the Financial Advisory and Intermediary Services (FAIS) Act. The FSCA continues to consider the remaining applications.
“In the meantime, they may not undertake any CASP-related activities as defined under the FAIS Act. Any institution or person found to be undertaking such activities without authorisation will be subject to regulatory action by the FSCA.”
In the meantime, the regulator’s statement clarified that the approvals do not South Africa recognize crypto assets as a legal form of tender or ‘ cryptocurrency.’ Additionally, the country’s central bank acknowledges crypto assets as currency, and any media reports suggesting otherwise are incorrect.
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