South Africa is on track to be among the pioneering countries in Africa to make licenses mandatory for crypto exchanges. It is anticipated that around 60 digital asset platforms will secure their permits by the end of this month, ensuring compliance with regulatory standards. The Commission of the Financial Sector Conduct Authority (FSCA) disclosed this information in an interview with Bloomberg.
The FSCA has set a deadline of November 30 for exchanges to submit their license applications. Failure to adhere to this deadline could lead to regulatory penalties. More than 300 crypto-asset providers responded to the call for applications, seeking official approval.
In a strategic move, the FSCA has opted to include crypto exchanges under the Financial Advisory and Intermediary Services (FAIS) Act. This decision means that crypto platforms will be assessed based on transparency, ethical behavior, competence, and operational capacity, aligning with the strict ‘fit-and-proper’ requirements of the FAIS Act.
The regulatory development comes at a time when Bitcoin has reached an all-time high value of $73,664. The surge in Bitcoin’s value reflects a trend of increasing investment and interest in cryptocurrencies, as highlighted by record investments in spot Bitcoin ETFs.
With the new regulatory framework in place, consumers using crypto exchanges will have access to improved protections and avenues for recourse that were previously unavailable. The FSCA’s oversight in enforcing the standards of the FAIS Act ensures a safer environment for both operators and consumers in the digital asset sector.
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