South Africa issues digital currency licenses to Luno, VALR
The Financial Sector Conduct Authority announced in 2023 that all VASPs had to obtain a license or shut down by the end of the year.
The Financial Sector Conduct Authority announced in 2023 that all VASPs had to obtain a license or shut down by the end of the year.
South Africa’s FSCA has received 355 applications but has only approved 262, a higher number than was previously revealed, according to a Reuters report.
In its new budget proposal, South Africa pledged to explore stablecoins, blockchain, and the tokenization of real-world assets over the next fiscal year.
FSCA announced in 2023 that all VASPs in the country would be required to apply for a license as part of a new regulatory regime. The deadline for the applications was last November 30, 2023.
While over 100 companies applied for the license, the FSCA only forwarded 50 companies to the licensing committee, with some virtual asset service providers (VASPs) withdrawing applications.
The Financial Sector Conduct Authority now classifies digital assets as digital representations of value built on DLT, the first step towards bringing digital currencies under the country’s laws.
The FSCA said it has tried to contact FTX on the issue to no avail, but CEO Sam Bankman-Fried refuted the claims and said he wants to work with the regulator.
The country’s top financial regulator believes that while they don’t pose systemic risk, digital currencies are still a risky sector for retail investors.
The Financial Sector Conduct Authority said it’s receiving a large number of complaints from South African investors who have lost their savings through digital currency scams.