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The Financial Sector Conduct Authority (FSCA) has approved the granting of licenses to 75 institutions as crypto asset service providers.
The complete list, including Peresec, Unum Capital, Luno, and more, includes well-known and lesser-known companies licensed to provide cryptocurrency services across three main licensed activities: advice, brokerage services, and investment management. I am.
There are different categories of licenses, with some entities allowed to carry out all three activities and others restricted to only two or one permitted activity.
In October 2022, SA's two lead financial services regulators, the FSCA and the Prudential Authority (PA), designated cryptoassets as financial products in terms of the Financial Advisory and Intermediary Services Act.
This took effect immediately, but crypto service providers were only granted exemptions by the regulator if they applied for a license between June 1, 2023 and the end of November 2023.
FSCA said it has received 374 applications to date and will provide an update once the applications are processed and approved.
The FSCA defines cryptoassets as digital representations of value that are not issued by a central bank but can be traded, transferred, or stored electronically by natural and legal persons for payment, investment, or other uses. Masu. Encryption technology is applied to such assets and distributed ledger technology is utilized.
It added that the company's licensing powers are limited to licensing and supervising providers only if they provide financial services related to crypto assets.
“This authorization does not include recognizing cryptoassets as legal tender or ‘cryptocurrency.’ Therefore, the South African Reserve Bank does not currently recognize cryptoassets as currency, suggesting otherwise.” The media reports are wrong.”
