South African Regulator Grants 248 Crypto Licenses, Rejects 9 Applications

South African Regulator Grants 248 Crypto Licenses, Rejects 9 Applications

The South African financial regulator, the Financial Sector Conduct Authority (FSCA), has made significant progress in regulating the cryptocurrency sector. Out of 420 applications submitted, the FSCA has granted 248 licenses to crypto asset service providers (CASPs), rejected 9 applications, and is still reviewing 56 others. Meanwhile, 106 entities withdrew their applications due to concerns raised by the regulator about their business models.

Regulatory Milestones

This confirmation comes just over a year after the FSCA’s application window closed. In December 2023, the FSCA reported receiving initial applications from 93 entities. The number of applications surged over the months, reaching 374 by April 2024, when the regulator had approved 75 licenses. A few months later, an additional 63 licenses were issued, culminating in the current tally of 248.

Rejected and Withdrawn Applications

Entities with rejected applications are not entirely barred from participating in the crypto sector. The FSCA clarified that these entities could reapply if they meet the established criteria. For those whose applications were rejected or withdrawn before a determination was made, the regulator emphasized:

“In the meantime, they may not undertake any CASP-related activities as defined under the FAIS Act. This does not apply to institutions or persons that submitted their license applications by 30 November 2023 and are still awaiting the finalization of their applications by the FSCA.”

Extension of Compliance Deadlines

In its commitment to fostering compliance, the FSCA has extended the exemption period for CASPs to meet specific regulatory requirements. Originally set to expire on November 11, 2024, the deadline has been pushed to June 30, 2025. Entities failing to meet these requirements risk suspension or withdrawal of their authorization.

The Road Ahead

The FSCA’s actions signify South Africa’s proactive approach to regulating the rapidly evolving cryptocurrency industry. By scrutinizing applications and establishing clear compliance standards, the regulator aims to ensure a secure and transparent crypto ecosystem.

The FSCA’s measures, including the rejection and withdrawal of applications, highlight its commitment to maintaining integrity within the sector. As the June 2025 compliance deadline approaches, crypto businesses operating in South Africa must align with regulatory standards to secure their positions in this emerging financial landscape.

Conclusion

South Africa’s crypto regulation journey reflects the delicate balance between fostering innovation and ensuring consumer protection. With 248 licenses granted and robust measures in place, the FSCA continues to shape the future of cryptocurrency regulation in the region.