South Africa Sets Licensing Deadline for Digital Asset Exchanges

• South Africa’s financial regulator, FSCA, now requires crypto exchanges to obtain licenses by year-end.
• FSCA has received 20 license applications so far, with more expected before the November 30 deadline.
• FSCA aims to protect investors through financial education and collaboration with regulators.

South Africa’s financial regulator, the Financial Sector Conduct Authority (FSCA), announced that crypto exchanges in the country must obtain licenses to operate by the year-end, reports Bloomberg.

The financial regulator intends to take “enforcement action” against crypto exchanges operating without a license after the deadline, which may lead to closure or fines, according to the report.

FSCA Commissioner Unathi Kamlana revealed in an interview that the Financial Sector Conduct Authority has received approximately 20 license applications in recent weeks, and more are anticipated prior to the November 30 deadline.

In an interview, Kamlana said that there was potentially serious harm to financial customers when using crypto products, and therefore it made sense for them to introduce the regulatory framework.

The commissioner noted that the effectiveness of their measures will be revealed over time, expressing the commitment to collaborate with the industry to refine and make any necessary changes.

Kamlana highlighted the financial risks associated with the crypto industry, urging individuals to exercise caution before diving in. The commissioner stated that potential losses could be substantial, urging people to think twice and carefully consider the implications before exposing themselves to this volatile sector.

The FSCA of South Africa has shown great engagement in regulating crypto and fintech sectors. Collaborating with an intergovernmental fintech working group consisting of major financial sector regulators and policymakers like the National Treasury and the South African Reserve Bank, the FSCA aims to strengthen oversight in these areas.

To safeguard consumers, the FSCA has implemented a range of protective measures, including financial education programs and initiatives to raise public awareness about cryptocurrency products.

In addition to South Africa, various countries worldwide have been closely monitoring and adopting different approaches to regulate the crypto market during this period. Some countries have implemented comprehensive regulatory frameworks to provide clarity and establish guidelines for crypto-related activities.

Recently, Thailand’s Securities and Exchange Commission (SEC) introduced new regulations for digital asset service providers to prioritize investor protection and the guidelines now mandate clear risk warnings for cryptocurrency trading.

Countries like the United States have witnessed increased regulatory scrutiny, with agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) actively monitoring the space.