On July 2, 2024, South Africa’s Financial Sector Conduct Authority announced the approval of 63 additional crypto asset service provider licenses, increasing the total to 138.
This milestone reflects the growing regulatory framework for crypto assets in the country. However, the FSCA emphasized that crypto assets are not recognized as legal tender or cryptocurrency, highlighting the distinction between assets like Bitcoin and traditional currency.
Dive into the full details of this significant development in South Africa’s crypto regulation landscape.
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Total Approval of 138 License Applications
The Financial Sector Conduct Authority (FSCA), South Africa's financial regulatory authority, announced on July 2, 2024, that it has approved an additional 63 license applications for crypto asset service providers (CASPs).
Previously, on April 22, 2024, the FSCA had approved a total of 75 CASP licenses. With the latest additions, the total number of authorized CASPs in South Africa now stands at 138.
The FSCA has received a total of 383 license applications to date. Of these, 5 applications have been rejected, and 80 applications were voluntarily withdrawn after discussions with the FSCA.
The remaining applications are currently under review, and updates will be provided regularly as the applications are processed and approved.
Institutions that have withdrawn or had their applications rejected can reapply in the future if they fully comply with the applicable licensing conditions. However, they are not permitted to engage in CASP-related activities during this period.
Emphasis on Crypto Assets Not Being Currency or Legal Tender
In its announcement, the FSCA emphasized that "crypto assets are not recognized as legal tender or cryptocurrency."
This statement underscores that assets like Bitcoin are considered assets rather than currency. The approval does not include the recognition of crypto assets as legal tender or cryptocurrency, and the South African Reserve Bank does not currently recognize crypto assets as currency.
There are various terms for digital currency, and currently terms in use include "virtual currency," "cryptocurrency," and "crypto assets."
The FSCA stresses that crypto assets are indeed assets, and media reports suggesting that crypto assets are currencies are incorrect.
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