South Africa is planning to license approximately 60 cryptocurrency platforms by the end of March. According to a report by Bloomberg, this initiative by the Financial Sector Conduct Authority (FSCA) underscores the nation's proactive approach towards regulating the burgeoning crypto sector.

The FSCA revealed that the response exceeded expectations, with more than 300 crypto-asset providers seeking regulatory approval. The deadline for application for the licenses is set for November 30.

Utilizing Existing Regulatory Frameworks

Rather than developing a standalone regulatory framework for crypto operators, the FSCA has opted to leverage the existing Financial Advisory and Intermediary Services Act.

By bringing crypto exchanges under the purview of this regulation, South Africa aims to bolster consumer protections and accountability within the sector. Notably, the new guidelines offer a recourse in case of breaches or misconduct by the crypto platform’s operators. This regulatory oversight aims to instill confidence among investors and mitigate potential risks associated with crypto trading.

Future Regulatory Developments

Commissioner Kamlana acknowledged that while the FAIS Act serves as a robust foundation for crypto regulation, ongoing supervision may reveal gaps that necessitate additional measures.

As the FSCA continues to license and monitor crypto platforms, it remains open to refining regulatory frameworks to address emerging challenges effectively.