thecoinrise.com
Pan African cryptocurrency exchange Yellow Card announced that it has secured a Virtual Asset Service Provider (VASP) license in Botswana.
This license comes off as a significant regulatory approval for the crypto leader to expand its business across the African region. Also, Yellow Card is the first-ever African crypto trading company to receive a VASP license from Botswana.
In accordance with Section 11 of the Virtual Asset Act, 2022, the license was discharged on September 29th, 2022 by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA). Likely, the Botswana VASP license will set up Yellow Card for advanced growth and access to strategic partnerships with other payment giants, financial institutions, and clients all over the continent.
With the license, Botswana customers are able to buy, sell, transfer and hold cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and the United States Dollar-pegged stablecoin Tether (USDT) with the local fiat currency of the region, Botswana Pula. Backed by the Polychain network, Yellow Card plans to focus its operations on the unbanked population in Botswana.
Chief Executive Officer and Co-founder of Yellow Card Chris Maurice explained that the license is a big deal for everyone on its value chain owing to the fact that affects the company, customers, investors, and the entire crypto ecosystem in that region.
“This opens up greater channels of expansion with regards to payment partners, banking, and expanding our client base across Africa. This will further show regulators in other markets that we are not just any other cryptocurrency company – we are pioneering, pushing boundaries, and setting the standard. All the more reason for them to work together with us as well,” Maurice outlined.
Botswana Push for Crypto Regulation
Equally, Yellow Card announced that its company is in compliance with global regulations like Anti Money Laundering (AML) and Know-Your-Customers (KYC) schemes in agreement with the Travel Rule introduced by the Financial Action Task Force.
Botswana was once touted as a country without an official cryptocurrency regulation framework.
However, in February, the government passed a bill to regulate the trading of crypto and digital tokens in a bid to tighten AML measures in the country. Therefore, any crypto trading company interested in offering its service in the country must be licensed by NBFIRA.