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South Africa’s financial regulator has asked exchanges operating in the country to obtain licenses before the end of 2023.
Crypto companies that fail to comply with the instructions before the deadline may be fined or have their business shut down by the authorities.
New licensing regime in South Africa
The Financial Sector Conduct Authority (FSCA) has Necessary Crypto exchanges in South Africa must secure a license before the November 30 deadline.
According to FSCA Commissioner Unathi Kamalana, around 20 companies have applied since the watchdog first launched the licensing process a few weeks ago, while more companies are expected to file applications before the deadline.
In October 2022, FSCA announced Crypto a financial product after a declaration proposal in November 2022 and consultations on the draft regulation. Furthermore, the publication of the final announcement mentions that crypto exchanges in South Africa must be licensed by the end of 2023. Defaulters can be fined 10 million rand ($536,387), jailed for 10 years, or both.
While the FSCA proposed a four-month window for crypto businesses to submit their license applications, some commentators believed the time frame was insufficient, with some comments suggesting six months and two years. Was. In response, the financial watchdog extended the license application period to six months in a final announcement, saying it was not necessary and inappropriate.
South Africa’s High-Profile Crypto Scams
Meanwhile, the South African regulator says the crypto asset industry is risky, with Kamlana adding that “this is an area where you can lose considerable money, so you should think twice before exposing yourself to it.”
The African nation, which has seen increased interest in the asset class, has also experienced some high-profile cryptocurrency scams that have caused investors to lose billions of dollars. In June 2021, the Kazi brothers, founders of South African crypto investment platform AfriCrypt, allegedly embezzled around 70,000 BTC (worth over $2 billion).
In addition, Johannes Steinberg, CEO of international multi-level marketing scheme Mirror Trading International (MTI), reportedly disappeared with 29,000 bitcoins in client funds. Following his arrest in Brazil, a US court recently ordered Steinberg to pay a $3.4 billion fine.
Kamalana further added that the FSCA introduced consumer protection measures that include awareness about crypto products and financial education.
According to the FSCA commissioner:
“Financial customers face potentially serious losses when using crypto products, and it therefore makes sense for us to introduce a regulatory framework. Time will tell the effectiveness of our measures, and we will continue to work closely with industry to make improvements and changes where and if necessary.”
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PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
South Africa’s financial regulator has asked exchanges operating in the country to obtain licenses before the end of 2023.
Crypto companies that fail to comply with the instructions before the deadline may be fined or have their business shut down by the authorities.
New licensing regime in South Africa
The Financial Sector Conduct Authority (FSCA) has Necessary Crypto exchanges in South Africa must secure a license before the November 30 deadline.
According to FSCA Commissioner Unathi Kamalana, around 20 companies have applied since the watchdog first launched the licensing process a few weeks ago, while more companies are expected to file applications before the deadline.
In October 2022, FSCA announced Crypto a financial product after a declaration proposal in November 2022 and consultations on the draft regulation. Furthermore, the publication of the final announcement mentions that crypto exchanges in South Africa must be licensed by the end of 2023. Defaulters can be fined 10 million rand ($536,387), jailed for 10 years, or both.
While the FSCA proposed a four-month window for crypto businesses to submit their license applications, some commentators believed the time frame was insufficient, with some comments suggesting six months and two years. Was. In response, the financial watchdog extended the license application period to six months in a final announcement, saying it was not necessary and inappropriate.
South Africa’s High-Profile Crypto Scams
Meanwhile, the South African regulator says the crypto asset industry is risky, with Kamlana adding that “this is an area where you can lose considerable money, so you should think twice before exposing yourself to it.”
The African nation, which has seen increased interest in the asset class, has also experienced some high-profile cryptocurrency scams that have caused investors to lose billions of dollars. In June 2021, the Kazi brothers, founders of South African crypto investment platform AfriCrypt, allegedly embezzled around 70,000 BTC (worth over $2 billion).
In addition, Johannes Steinberg, CEO of international multi-level marketing scheme Mirror Trading International (MTI), reportedly disappeared with 29,000 bitcoins in client funds. Following his arrest in Brazil, a US court recently ordered Steinberg to pay a $3.4 billion fine.
Kamalana further added that the FSCA introduced consumer protection measures that include awareness about crypto products and financial education.
According to the FSCA commissioner:
“Financial customers face potentially serious losses when using crypto products, and it therefore makes sense for us to introduce a regulatory framework. Time will tell the effectiveness of our measures, and we will continue to work closely with industry to make improvements and changes where and if necessary.”
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
