Crypto exchange applications flood South Africa as the country initiates licensing process

South Africa’s Financial Sector Conduct Authority (FSCA) has given the green light to 59 cryptocurrency platforms, granting them licenses under existing regulations, according to Reuters. The FSCA has a total of 355 applicants, with 262 applications currently under review. These approvals were issued on March 12th. The deadline for crypto companies to apply for licenses is November 30th, 2023, and they will be subject to regulation under the Financial Advisory and Intermediary Services Act (FAIS). This legislation will introduce new safeguards for customers and empower regulators to take enforcement measures. The South African Reserve Bank (SARB) Financial Surveillance Department will oversee supervision. Unathi Kamlana, the FSCA Commissioner, confirmed these developments to Bloomberg. South Africa is said to be the first African country to license crypto exchanges. Initially, the country had considered establishing a separate regulatory framework for cryptocurrencies, but those plans remained in place in 2022. The SARB announced in the same year that cryptocurrency would be recognized as a financial asset, rather than a currency, in forthcoming regulations expected in 2023. However, the FSCA ultimately classified it as a financial product. In July, the FSCA Commissioner revealed that 20 applications had been submitted ahead of the November deadline, warning that crypto exchanges operating without licenses would face penalties and potential closure. By December, the FSCA had received a total of 128 applications, with 72 of them scheduled for consideration between December and March 14th. The South African National Treasury announced in its annual budget review in February that it would revise its policy to include stablecoins in its definition of crypto assets.