South Africa plans to license around 60 cryptocurrency platforms by the end of March. According to a report from
BloombergThis initiative by the Financial Sector Conduct Authority (FSCA) highlights the country's proactive approach to regulating the booming crypto sector.
The FSCA revealed that the response has exceeded expectations, with more than 300 cryptoasset providers seeking regulatory approval. The deadline for applying for licenses is November 30.
Rather than developing a standalone regulatory framework for crypto operators, the FSCA chose to leverage existing financial advice and intermediary services law. The regulator aims to strengthen consumer protection and accountability within the sector by bringing crypto exchanges under its purview.
regulation
Regulation
Like any other high net worth industry, the financial services industry is closely regulated to help combat illicit behavior and manipulation. Each asset class has its own set of protocols in place to combat their respective forms of abuse. In the area of foreign exchange, regulation is carried out by authorities in several jurisdictions, although ultimately a binding international order is lacking. Who are the main regulators of the sector? Regulators such as the UK's Financial Conduct Authority (
Like any other high net worth industry, the financial services industry is closely regulated to help combat illicit behavior and manipulation. Each asset class has its own set of protocols in place to combat their respective forms of abuse. In the area of foreign exchange, regulation is carried out by authorities in several jurisdictions, although ultimately a binding international order is lacking. Who are the main regulators of the sector? Regulators such as the UK's Financial Conduct Authority (
.
The new guidelines notably offer recourse in the event of a breach or fault on the part of the operators of cryptographic platforms. This regulatory oversight aims to instill investor confidence and mitigate potential risks associated with trading cryptocurrencies.
South Africa will license around 60 cryptocurrency platforms by the end of the month, placing it among the first nations on the continent to require digital asset exchanges to hold operating permits. https://t.co/zRIB7femKd
– Bloomberg (@business) March 13, 2024
Commissioner Unathi Kamlana acknowledged that while regulations provide a solid foundation for crypto oversight, ongoing monitoring may reveal gaps that require additional action. As the FSCA continues to license and monitor crypto platforms, it remains open to improving regulatory frameworks to effectively address emerging challenges.
Last year, South Africa allowed all crypto exchanges operating in the country to register with the FSCA. Failure to comply with this directive could result in enforcement action, such as fines or closure of a business. The new regulations aim to protect investors from potential fraud and ensure greater accountability in the digital assets space.
South Africa regulates crypto
The FSCA directive affects major cryptocurrency exchanges such as Binance, Coinbase, Kraken, and KuCoin, all of which currently operate in the region. The move follows some reported cases of fraud, including the infamous Africrypt incident in which Bitcoins worth $3.6 billion disappeared due to an alleged hack.
Additionally, the FSCA's decision to strengthen regulation is influenced by previous investigations, such as the investigation into Mirror Trading International (MTI), a cryptocurrency exchange network operating in South Africa. Previously, the United States Commodities and Futures Trading Commission sued MTI for its involvement in what has been dubbed “the largest fraud scheme involving Bitcoin.”
South Africa plans to license around 60 cryptocurrency platforms by the end of March. According to a report from
BloombergThis initiative by the Financial Sector Conduct Authority (FSCA) highlights the country's proactive approach to regulating the booming crypto sector.
The FSCA revealed that the response has exceeded expectations, with more than 300 cryptoasset providers seeking regulatory approval. The deadline for applying for licenses is November 30.
Rather than developing a standalone regulatory framework for crypto operators, the FSCA chose to leverage existing financial advice and intermediary services law. The regulator aims to strengthen consumer protection and accountability within the sector by bringing crypto exchanges under its purview.
regulation
Regulation
Like any other high net worth industry, the financial services industry is closely regulated to help combat illicit behavior and manipulation. Each asset class has its own set of protocols in place to combat their respective forms of abuse. In the area of foreign exchange, regulation is carried out by authorities in several jurisdictions, although ultimately a binding international order is lacking. Who are the main regulators of the sector? Regulators such as the UK's Financial Conduct Authority (
Like any other high net worth industry, the financial services industry is closely regulated to help combat illicit behavior and manipulation. Each asset class has its own set of protocols in place to combat their respective forms of abuse. In the area of foreign exchange, regulation is carried out by authorities in several jurisdictions, although ultimately a binding international order is lacking. Who are the main regulators of the sector? Regulators such as the UK's Financial Conduct Authority (
.
The new guidelines notably offer recourse in the event of a breach or fault on the part of the operators of cryptographic platforms. This regulatory oversight aims to instill investor confidence and mitigate potential risks associated with trading cryptocurrencies.
South Africa will license around 60 cryptocurrency platforms by the end of the month, placing it among the first nations on the continent to require digital asset exchanges to hold operating permits. https://t.co/zRIB7femKd
– Bloomberg (@business) March 13, 2024
Commissioner Unathi Kamlana acknowledged that while regulations provide a solid foundation for crypto oversight, ongoing monitoring may reveal gaps that require additional action. As the FSCA continues to license and monitor crypto platforms, it remains open to improving regulatory frameworks to effectively address emerging challenges.
Last year, South Africa allowed all crypto exchanges operating in the country to register with the FSCA. Failure to comply with this directive could result in enforcement action, such as fines or closure of a business. The new regulations aim to protect investors from potential fraud and ensure greater accountability in the digital assets space.
South Africa regulates crypto
The FSCA directive affects major cryptocurrency exchanges such as Binance, Coinbase, Kraken, and KuCoin, all of which currently operate in the region. The move follows some reported cases of fraud, including the infamous Africrypt incident in which Bitcoins worth $3.6 billion disappeared due to an alleged hack.
Additionally, the FSCA's decision to strengthen regulation is influenced by previous investigations, such as the investigation into Mirror Trading International (MTI), a cryptocurrency exchange network operating in South Africa. Previously, the United States Commodities and Futures Trading Commission sued MTI for its involvement in what has been dubbed “the largest fraud scheme involving Bitcoin.”