The Financial Sector Conduct Authority (FSCA) has licensed 75 institutions as South Africa’s very first crypto asset service providers.
This comes after weeks of crypto exchanges, investment advisories, funds, and arbitrage operators individually announcing that they had received their licences.
Licensees include South African crypto exchanges like Luno, VALR, and Altcoin Trader.
The FSCA took issue with “certain institutions” claiming that they are the first or only ones currently licensed as crypto asset service providers (CASPs).
MyBroadband has been asking the FSCA since 27 March for the full list of CASPs after companies started issuing media releases claiming to be the first licence recipients.
While it acknowledged our query, we never received answers until the FSCA’s media statement today (22 April).
The FSCA began the process to licence CASPs on 1 June 2023.
Institutions rendering financial services relating to crypto assets were required to submit their licence applications by 30 November 2023.
According to law firm Allen & Overy, the FSCA issued the first licence batch by 31 March 2024.
“The FSCA continues to receive and consider applications from new and existing CASPs,” South Africa’s financial regulator stated.
“374 licence applications have been received to date. The FSCA will continue to provide regular updates as these applications are processed and approved.”
The FSCA also emphasised that it does not regard any crypto asset as currency.
It said crypto assets are defined as a digital representation of value with the following characteristics:
- Not issued by a central bank
- Can be traded, transferred or stored electronically by natural and legal persons for payment, investment and other forms of utility
- Applies cryptographic techniques
- Uses distributed ledger technology
“The public is reminded that the FSCA’s licensing powers are limited to the authorisation and supervision of CASPs only insofar as they render financial services related to crypto assets,” it said.
This includes advice, intermediary, and investment management services.
“This authorisation does not include the recognition of crypto assets as legal tender or ‘cryptocurrency,’” the FSCA stated.
“Any media reports implying otherwise are therefore incorrect as the South African Reserve Bank does not currently recognise crypto assets as currency.”