South Africa’s Financial Sector Conduct Authority (FSCA) will officially decide 1on 50 crypto businesses’ licence applications in the coming weeks.
According to South African press sources, FSCA head of enforcement Gerhard van Deventer indicated in a podcast that 20 of the 90-plus applications have withdrawn.
In December, the FSCA reported 128 cryptocurrency asset service provides licence applications as of November 2023.
South Africa was the first African nation to licence crypto exchanges in June 2023. The FSCA, South Africa’s financial authority, mandated licences for all crypto exchanges by 2023.
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The FSCA’s chief of enforcement, Gerhard van Deventer, told MoneywebCrypto Podcast that 145 applications were submitted by November 30, 2023, according to licencing division statistics.
Following those 145 applications, 50 were submitted to the Authority’s licencing committee in December, and 20 have since been rejected.
The first batch of cryptocurrency asset service provides licence applications would be reviewed in a few weeks, he said. For the 20 revoked applications, several applicants’ firms were not focused on crypto but were exploiting the chance to increase their licence.
After interacting with the FSCA during the application process, the business realises how difficult it is to secure this licencing. Some of them decided to wait till they decided to enter into crypto. Gerhard Van Deventer commented.
Additionally, some applicants “got stuck” on the essential individual criteria. Key informants need relevant experience, qualifications, and skills, according to Van Deventer.
Since crypto hasn’t been around long, there’s not much of that. In those cases, applicants have indicated that they will find an appropriate Location and apply again later.”
Van Deventer noted that all applicants, regardless of merit, can continue delivering this financial service under specified conditions until they learn the conclusion.
Importantly, everyone who did not apply for a licencing must stop immediately. After being prohibited, he said they would undertake unregistered business.
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South African crypto regulation
Crypto-asset financial services companies had until November 30 to apply for licences. Unlicensed companies had to file a detailed licencing application, while licenced FSPs needed approval to include crypto assets.
Crypto financial service businesses without licences after November operate unlawfully. FSCA threatens jail time or fines.
South Africa is interested in blockchain technology and its offerings. We reported in November that the government joined 47 other nations in developing a taxation standard that will empower them to pursue individuals and organisations that fail to disclose earnings and pay taxes on crypto, NFT, and other digital assets by 2027.
These trends suggest South Africa seeks to beat Nigeria and Kenya to regulate, administer, and use the blockchain for national growth.