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EA Capital has become the latest digital asset firm to obtain a license in South Africa as the continent’s second-largest economy ramps up digital currency regulations.
EA Capital announced that it had acquired a Category I license as a Crypto Asset Service Provider (CASP) from the country’s Financial Sector Conduct Authority (FSCA). It joins other major players, including Luno and VALR, which acquired the license this year under the FSCA’s new digital asset regulatory framework.
The Cape Town-based company offers diverse digital asset services, from financial services such as prime brokerage, liquidity provision and an over-the-counter (OTC) desk to derivatives, foreign exchange and international payments.
In a statement, CEO and founder Ryan Aufrichtig revealed that the company has operated as a regulated financial services provider and an accountable institution since late 2021.
“EA Capital provides a unique blend of an established traditional international banking team with a long-term market-leading track record + experienced & expert crypto/digital asset & blockchain technology team with complementary skills and experience,” the CEO commented.
He believes the license underscores his team’s “culture, experience, expertise and understanding in the governance and management of the full front-to-back business within a highly regulated environment.”
Aufrichtig further praised South Africa’s continued shift from isolating the sector towards regulating it. He believes this is the best approach to promote trust, protect investors and consumers and foster sustainable long-term growth for a country whose economy has slowed down over the past four years and is losing out to peers like Egypt.
South Africa has stepped up its digital asset regulation over the past two years, starkly contrasting with most African nations who have kept digital assets on the fringes.
Nigeria, Africa’s biggest economy, has cracked down on the sector this year, blaming it for the naira’s woes. It has shut down offshore exchanges and is still detaining Tigran Gambaryan, a Binance executive facing the charges of the global exchange. This is despite the country ranking second for adoption globally this year, ahead of the United States, Indonesia, the Philippines and other titans.
However, a month ago, Nigeria’s Securities and Exchange Commission (SEC) issued its first licenses to two local exchanges: Quidax and Busha Digital. SEC chair Agama Emomotimi has promised to support the sector as one of the government’s pledges to help the youth explore opportunities in the digital economy.
Watch: Tech redefines how things are done—Africa is here for it