South African regulator may license 36 crypto companies in December

South Africa’s main fiscal regulator, the Financial Sector Conduct Authority (FSCA), reviewed 128 applications from crypto work plus providers (CASPs) but intends to sermon lone 36 during its adjacent gathering successful December. 

The numbers were published connected Nov. 30 by the South African quality outlet My Broadband. According to the publication, the FSCA plans to reappraisal 36 licensees’ presentations astatine the Dec.12 Licensing Executive Committee meeting. A further 22 applications volition beryllium presented connected Feb.13. The past 14 applications volition person to hold until March 12.

The destiny of each the remaining applications wasn’t specified by the Authority, which explained its valuation method arsenic the combined appraisal of Know Your Customer onboarding, information protection, cyber hazard management, struggle of involvement management, complaints handling, and recognition counterparty hazard management.

The FSCA besides published its “Crypto Assets Markets Study” for 2023 connected the aforesaid day, Nov. 30. The survey recovered that 60% of each traded crypto successful South Africa are alleged “unbacked crypto assets,” which means immoderate cryptocurrency too stablecoins (26% of the marketplace share) and nonfungible tokens (NFTs, 4% of the marketplace share), and immoderate types of centrally issued coins.

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According to the survey, the mean crypto plus supplier successful South Africa (46%) has an yearly gross of betwixt 1 and 50 cardinal South African rand ($53,000 to $2.7 million). And lone 8% of each the CASPs instrumentality successful much than 100 cardinal rand ($5.4 million).

The highest monthly transaction worth connected the South African crypto marketplace was recorded successful November 2022, erstwhile it peaked astatine implicit 8 cardinal rand (around $427 million).

In July 2023, the FSCA warned that immoderate CASP successful the state should get a licence by the extremity of the year. For immoderate of them operating without a licence aft the deadline, the regulator intends to instrumentality “enforcement action,” which whitethorn impact fines oregon adjacent closure.

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