Grace Ashiru
After two years of foundational efforts, the Financial Sector Conduct Authority (FSCA) has approved 75 crypto asset service providers (CASPs) from a pool of 374 applicants. The list, which was announced this Monday, includes prominent global exchanges such as Luno and VALR. Notably absent from the list are major entities like Binance and Yellow Card. The FSCA has noted that these applications are still under review and has committed to providing ongoing updates as the evaluation and approval process continues, according to a statement provided to Bendada.com. The objectives of the FSCA’s licensing initiative are twofold: to safeguard South African investors from the risks associated with the volatile cryptocurrency market and to combat illegal activities, such as money laundering and terrorist financing, through enhanced regulatory oversight.
The FSCA clarifies that granting a license should not be seen as an approval of cryptocurrencies as a legal form of money. The firms that have been licensed offer a diverse portfolio of services. These services include giving advice, managing exchanges, handling crypto payments, exchanging cryptocurrencies with conventional currencies, profiting from price differences, tokenizing assets, developing cryptocurrency-based index products, and maintaining digital wallets for clients. Felicity Mabaso, who is the divisional head of licensing at the FSCA, cautions that any firm that failed to secure a license and persists in these activities will be subject to investigation and consequential actions.
Yellow Card spokesperson Rutendo Nyamuda told Bendada.com that the company submitted a request for authorization to the FSCA in November 2023. “Our application is currently being processed, and we anticipate receiving authorization soon,” stated Nyamuda. “Meanwhile, we are legally operating as a CASP, adhering to the FSCA’s FAIS exemption regime.” In contrast, the future of crypto leader Binance in South Africa is still unclear, with no confirmation of rejection from the FSCA. This uncertainty comes as Binance faces significant regulatory challenges in Nigeria, another key African crypto market, where it has suspended its operations. Complicating matters further, one Binance executive has been arrested, and another is facing extradition from Kenya after fleeing from authorities in Nigeria.
The Central Bank of Nigeria has alleged that the cryptocurrency exchange managed more than $26 billion in untracked transactions. Furthermore, Nigeria’s Securities Exchange Commissions have deemed Binance unauthorized. CEO Richard Teng recently revealed that the firm is collaborating “very closely” with the Nigerian government to address these matters.
