The agency reported that 56 applications from companies working with virtual assets are currently under consideration, and nine have been rejected. 106 organizations withdrew their applications after the FSCA questioned their business model.
On June 1, 2023, the South African regulator introduced a new licensing regime, according to which crypto companies are required to obtain a license to operate in the country within six months. This requirement was introduced to improve consumer protection.
In December 2023, the FSCA received applications for registration from 93 organizations, and by April 2024, the total number of applications submitted to the agency reached 374. In March, 59 crypto firms received a license from the regulator, and in April their number increased to 75. A few months later, the regulator approved 63 more applications.
The FSCA said companies whose applications have been rejected can resubmit them if those firms meet the criteria. The regulator extended the period of exemption of crypto services from compliance with certain regulatory requirements from November 11, 2024 to June 30, 2025.
Earlier, the Central Bank of South Africa urged banks not to refuse services to crypto companies and to wisely assess the risks of working with clients who own digital assets.
Source: Bits
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