South Africa Takes a Big Step Towards Crypto Regulation with Approval of 59 Licenses
The Financial Sector Conduct Authority in South Africa has approved about 59 crypto licenses, marking a significant move towards regulating the cryptocurrency market in the country. This development positions South Africa as one of the first African countries to require crypto exchanges to be licensed, with approximately 60 cryptocurrency platforms expected to receive permits by the end of the month.
The Financial Sector Conduct Authority has set a deadline of November 30 for exchanges to apply for licenses or face enforcement action. Currently, more than 300 crypto-asset providers are seeking approvals, highlighting the growing interest in the crypto market in South Africa.
The authority has authorized the Financial Surveillance Department of the South African Reserve Bank (SARB) to conduct supervision of the licensed exchanges. FSCA Commissioner Unathi Kamlana emphasized the importance of licensing and supervision in identifying gaps in the regulatory framework and ensuring the security of the market.
The regulatory process in South Africa began in 2021, with plans to finalize regulations by 2022. However, the SARB later announced that cryptocurrency would be declared a financial asset in regulations due in 2023. Ultimately, the FSCA declared it a financial product, paving the way for the approval of licenses.
The approval of these licenses is expected to benefit traders and investors by providing a sense of regulation and security in the market. With the recent cryptocurrency crash underscoring the need for market regulation, the move towards crypto regulation could stabilize the volatile market and make it more accessible to institutional investors.
In addition, the inclusion of stablecoins in the definition of crypto assets by the South African National Treasury and the requirement for reporting transactions involving crypto assets by trading platforms further solidify the regulatory framework in the country.
Overall, the approval of 59 crypto licenses in South Africa represents a significant step towards crypto regulation and market stability. As more applications are processed and approved, the market is expected to become more legitimate and accessible to a wider range of investors.
Source: [The Coin Republic](https://www.thecoinrepublic.com/2024/03/14/south-africa-approves-crypto-licenses-a-step-towards-regulation/)
