The Financial Sector Conduct Authority of South Africa confirms approved licensing for crypto asset providers.
The Financial Sector Conduct Authority (FSCA), South Africa’s financial regulator, has officially affirmed and elucidated the roster of presently sanctioned cryptocurrency service providers. According to their statement, a total of 75 institutions have received approval to function as crypto asset service providers (CASPs).
The Financial Sector Conduct Authority of South Africa
The Financial Sector Conduct Authority (FSCA) in South Africa has recently affirmed and clarified the status of licensed cryptocurrency service providers in the country. Contrary to some media reports, the FSCA has provided a comprehensive list of approved providers, along with their license categories.
As of now, a total of 75 institutions have been approved to operate as crypto asset service providers (CASPs).
License Categories and Services
The FSCA has categorized the approved CASPs into different license categories based on the services they are authorized to provide. More than 20 CASPs have received Category I and II licenses, allowing them to provide advisory, intermediary, and investment management services.
Other institutions have received Category I licenses, enabling them to offer advisory and intermediary services.
Recent Approvals
Popular crypto asset providers like VALR and Luno have recently announced their approval by the FSCA. According to the official list, Luno has received a Category I license, while VALR has obtained both Category I and II approvals.
Comprehensive List of Approved Providers
In addition to VALR and Luno, several other CASPs have received approval from the FSCA. These include ARC Capital, DFM Global, and Unum Capital, among others. The licenses granted vary, with some providers receiving Category I and II approvals, and others receiving Category I, II, and IIA licenses.
Licensing Process and Updates
The licensing process for CASPs commenced in June 2023, with institutions offering crypto asset services required to apply for licenses by November 2023. The FSCA has received a total of 374 license applications and continues to process and approve them.
The authority has warned that any entity conducting crypto asset activities without a license will face investigation and consequences.
Authority’s Stance on Crypto Assets
While the FSCA has approved licenses for CASPs, it emphasizes that its authority is limited to authorizing and supervising these providers under the Financial Advisory and Intermediary Services (FAIS) Act.
The authority does not recognize crypto assets as legal tender or cryptocurrency. Additionally, the South African Reserve Bank does not currently recognize crypto assets as currency.
Conclusion
The confirmation of approved crypto service providers by the FSCA provides clarity and transparency in the South African cryptocurrency market. With a comprehensive list of licensed institutions, investors and users can have confidence in engaging with regulated entities while ensuring compliance with regulatory standards.
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