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South Africa’s Financial Sector Conduct Authority (FSCA) Grants Crypto Licenses
The Financial Sector Conduct Authority (FSCA) in South Africa has confirmed that it has granted crypto licenses to 75 institutions. This confirmation comes after several crypto businesses claimed to be the first to receive such licenses.
Crypto Asset Service Providers (CASPs) License
The FSCA issues crypto asset service providers (CASPs) licenses under the Financial Advisory and Intermediary Services (FAIS) Act. These licenses authorize and supervise CASPs that provide financial services related to crypto assets as defined under the FAIS Act.
- Services include advice, intermediary, and investment management
- Not recognition of crypto assets as legal tender
It is important to note that the South African Reserve Bank does not currently recognize crypto assets as currency, as emphasized by the FSCA.
Entities with Crypto Licenses
Some of the institutions that have received crypto licenses include Luno, Altcoin Trader, and VALR.
Out of over 374 applications received from CASPs, only 75 have been licensed after two years of groundwork. The FSCA will continue to provide updates as more applications are processed and approved.
Binance Excluded from Crypto License List
Despite being one of the world’s largest crypto exchanges, Binance did not make the list of crypto license holders in South Africa. The exchange had established a local presence in the country in July 2022 but announced the termination of some services to comply with regulations.
The FSCA has clarified that Binance is not authorized to offer financial services in South Africa, as the country does not currently regulate crypto-related investments. Additionally, the South African Revenue Service (SARS) has imposed new taxes on cryptocurrencies, up to 45%.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
