South Africa Will Grant Licenses to 60 Crypto Platforms by the End of the Month

• South Africa is set to license 60 cryptocurrency platforms by the end of this month. 
• FCSA set the deadline for over 300 crypto asset providers seeking the green light to November 30.
• Unathi Kamlana says rejected companies can apply for reconsideration under existing legislation.

According to a Bloomberg report, South Africa will license about 60 cryptocurrency platforms by the end of the month. Furthermore, the report states that the Financial Sector Conduct Authority (FCSA) laid a strict deadline for exchanges to apply for licenses by the 30th of November.

In an interview with Bloomberg, FCSA Commissioner Unathi Kamlana said, “We are processing those licensing applications, and we are doing so in a phased manner given the numbers.” He clarified that if a company is rejected, it can apply for reconsideration under existing legislation. 

Kamlana said that the FCSA, through licensing and supervising the act, might perhaps discover that there are gaps that cannot be closed by the existing regulatory framework. Developments will then be made to discover what the gaps are. 

This comes after the country announced in 2022 that it wants to treat crypto as a financial product. Several of the continent’s biggest trading venues emerged from South Africa, including Luno, owned by Barry Silbert’s Digital Currency Group Inc. and Pantera-backed VALR.

The regulatory authority decided against creating a distinct framework for cryptocurrency operators. Instead, it will regulate these firms under the existing Financial Advisory and Intermediary Services Act. This act will focus on the honesty, integrity, competency, and ability of all financial service providers.

Yellow Card, a pan-African cryptocurrency exchange, was the first company in Africa to acquire a license when Botswana issued a permit in 2022. South Africa wants to follow in Botswana’s footsteps, and they are set to achieve this feat by the end of the month.