• South Africa has announced a deadline of 30 November for all crypto exchanges operating in the country to obtain licenses.
• Crypto exchanges operating without a license after 30 November could invite enforcement action.
• South Africa is aiming to create a regulatory framework for crypto assets.
South Africa Sets Deadline for Crypto Exchange Licenses
South Africa has set a deadline of November 30th for all cryptocurrency exchanges operating within the country to obtain licenses. The Financial Sector Conduct Authority (FSCA), the financial regulator of South Africa, has received approximately 20 license applications since its opening and expects more before the deadline. Any exchanges that continue to operate without obtaining a license could face enforcement action, including penalties or closure.
Establishing Regulatory Framework For Cryptocurrency Assets
FSCA Commissioner Unathi Kamlana noted that establishing a regulatory framework for cryptocurrency assets is important due to the potential harm it can cause to financial clients. He also emphasized the need to have more time to assess the impact of any regulatory measures put in place. The commissioner promised continuous engagement with industry members in order to develop and implement required modifications.
Growing Adoption Of Cryptocurrency In South Africa
It was reported that 9.44% of South African population owns cryptocurrency, with most holders in 18-44 age group (83%). Bitcoin [BTC] remains as one of the popular choices among cryptocurrency owners in South Africa. This move by FSCA makes South Africa as one of first countries in Africa which requires crypto asset exchanges to get licensed .
Global Platforms Operating In The Country
This decision affects many prominent trading platforms based in South Africa such as Digital Currency Group-owned Luno and Pantera Capital-backed VALR crypto exchange. It also extends to global platforms like Binance [BNB] which are operating within the country and must now obtain licenses before operational deadlines end on November 30th .
The announcement by FSCA concerning licensing requirements is part of growing trend across different countries globally tightening their grip on cryptocurrencies and blockchain related regulations . With this move, traders and other stakeholders will be able to benefit from better security protocols while protecting consumers from potential financial losses associated with unauthorized operations within these digital asset markets .