South Africa grants 248 crypto asset service provider licenses

The Financial Sector Conduct Authority (FSCA) in South Africa has approved 248 crypto asset service provider (CASP) licenses out of the 420 applications received.

According to local reports, 56 applications remain under review, while nine have been rejected.

Additionally, 106 applicants voluntarily withdrew their submissions after the FSCA raised concerns about their business models.

This licensing milestone comes over a year after the FSCA closed the application process in November 2023.

Initially, the regulator received 93 applications, which later grew to 374 by April 2024.

Over time, the FSCA granted licenses in stages, with 75 issued by April and another 63 later that year.

Applicants whose licenses were rejected may reapply if they meet the required standards.

However, the FSCA clarified that rejected entities cannot perform CASP-related activities under the Financial Advisory and Intermediary Services (FAIS) Act unless they reapplied before the November 2023 deadline.

The FSCA also announced an extension for compliance with certain regulatory requirements.

The exemption period, originally set to expire on November 11, 2024, has been extended to June 30, 2025.

Non-compliance with these requirements may result in license suspension or withdrawal.

The FSCA emphasized the importance of ensuring that all CASPs meet the necessary regulatory criteria.

“In the meantime, they may not undertake any CASP-related activities as defined under the FAIS Act,” commented the authority in a statement.

South Africa’s proactive approach to regulating the crypto sector reflects its intent to create a secure and transparent financial environment.