South Africa is set to become one of the first countries in Africa to mandate licenses for crypto exchanges.
Sixty digital asset platforms should have their permits, guaranteeing that companies follow legal requirements by the end of this month. The Commission of the Financial Sector Conduct Authority (FSCA) disclosed this today in an interview with Bloomberg.
The FSCA has given exchanges till November 30 to submit their applications for licensing, regulations may impose penalties for noncompliance. More than 300 cryptocurrency asset providers applied in response to the call for submissions in order to obtain official approval.
The FSCA has decided to include cryptocurrency exchanges under the Financial Advisory and Intermediary Services (FAIS) Act, which is currently in effect.
As a result of this ruling, crypto platforms will now be assessed according to the strict “fit-and-proper” standards of the FAIS Act, which include transparency, ethical behavior, competency, and operational capacity.
A notable increase follows the regulatory milestone in the value of Bitcoin, which reached a record high of $73,664. The ascent of Bitcoin indicates a growing trend in cryptocurrency investment and enthusiasm, further highlighted by historically high investments in spot Bitcoin ETFs.
Customers using cryptocurrency exchanges will have access to more protections and channels for previously unattainable redress under the new legal framework.
Operators and customers in the digital asset arena are guaranteed a safer environment thanks to the FSCA’s authority to implement the FAIS Act’s regulations.
