In a significant development for South Africa’s crypto industry, the Financial Sector Conduct Authority (FSCA) has commenced the issuance of licences to up to Luno and 59 other crypto companies.
Among the pioneering batch of licensed entities stand prominent names like Luno and Zignaly, marking a pivotal moment in the sector’s regulatory journey.
The FSCA’s decision to regulate crypto firms under existing financial legislation underscores South Africa’s commitment to fostering a compliant and secure crypto environment.
“This is a positive step for both the cryptocurrency industry and South Africans,” remarked Luno’s SA country manager, Christo de Wit. He emphasised the importance of customer compliance and safety, saying they “have driven our growth since the beginning and will continue to be priorities.”
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Securing Regulatory Approval
Luno, a leading cryptocurrency exchange platform, disclosed its attainment of regulatory approval as a financial service provider under the Financial Advisory and Intermediary Services Act, 2002 (FAIS). “We are pleased to announce that Luno PTY LTD has been approved as a financial service provider by the FSCA,” said Christo de Wit.
Zignaly, a decentralised social investing marketplace, revealed that it had received a Category 2 – Discretionary Financial Service Provider (FSP) licence. “This licence allows us to conduct discretionary fund management and act as a custodian of funds for our clients,” stated Zignaly in a press release.
With licensed entities like Luno and Zignaly, consumers can now verify the legitimacy of service providers, enhancing confidence and trust in the crypto sector. “When entrusting crypto assets to a service provider, South African consumers can now check whether [it] is licensed by the FSCA,” explained Unathi Kamlana, FSCA Commissioner.
Stringent Requirements for Licensing
To obtain a licence, crypto firms must meet rigorous regulatory requirements outlined by the FSCA. These include demonstrating financial soundness, ensuring the fitness and propriety of key individuals, and implementing robust operational frameworks. “These requirements will safeguard the interests of consumers and the integrity of the financial system,” stated Kelle Gagné, counsel at Allen & Overy.
As South Africa embraces crypto regulation, licensed companies like Luno and Zignaly are poised to drive innovation and transparency in the sector. The FSCA’s licensing framework sets a precedent for regulatory oversight in the region, signalling a maturation of the crypto industry and paving the way for broader adoption and acceptance.
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About Luno and Zignaly
Luno South Africa is a secure cryptocurrency platform available in over 40 countries, including South Africa. It allows users to buy, sell, store, and trade cryptocurrencies like Bitcoin, Ethereum, XRP, and more. Luno offers express withdrawals for South African customers and provides a convenient way to purchase cryptocurrencies using debit/credit cards.
Zignaly is a trading terminal that provides cryptocurrency trading robots for automatic trading with external assistance. It operates in South Africa as a decentralised social marketplace, allowing traders to connect to their TradingView accounts, access favourite indicators, and engage in automatic trading. Zignaly is cloud-based, user-friendly, and can serve as a passive income tool for traders. The company recently closed a substantial $50 million financing deal with a Luxembourg fund, indicating its growth potential in the crypto industry.