South Africa’s Financial Sector Conduct Authority (FSCA) has officially confirmed that it has granted licenses to 75 institutions involved in the crypto sector. This announcement comes after various crypto businesses claimed to be the first and sole entities to receive such licenses. These licenses, issued under the Financial Advisory and Intermediary Services (FAIS) Act, pertain to crypto asset service providers (CASPs).
The FSCA clarified that its licensing authority is limited to the authorization and supervision of CASPs offering financial services related to crypto assets, as defined by the FAIS Act. These services encompass advice, intermediary, and investment management services, but do not extend to recognizing crypto assets as legal tender.
In response to media reports suggesting otherwise, the FSCA emphasized that the South African Reserve Bank does not currently recognize crypto assets as currency.
Among the entities granted crypto licenses are well-known platforms such as Luno, Altcoin Trader, and VALR. Despite receiving over 374 applications from CASPs, the FSCA has meticulously reviewed and licensed only 75 institutions after a two-year groundwork period. The FSCA pledged to provide regular updates as it continues processing and approving applications.
However, notable crypto exchange Binance did not appear on the FSCA’s list of licensed entities in South Africa. Although Binance established its presence in the country in July 2022, it announced the termination of some services to comply with regulations following warnings from the regulator regarding risks to consumers associated with the “Binance Group.”
According to the FSCA, Binance is not authorized to offer any financial services or conduct business in South Africa, where crypto-related investments remain unregulated. Additionally, the South African Revenue Service (SARS) has introduced new taxes on cryptocurrencies, with rates reaching up to 45%.