South Africa's top financial regulator, the Financial Sector Conduct Authority (FSCA), reviewed 128 applications from crypto asset service providers (CASPs), but intends to discuss only 36 during its next meeting in December.
The numbers were crypto-asset-service-provider-licensing-in-south-africa.html” target=”_blank” rel=”noopener nofollow” data-amp=”https://mybroadband-co-za.cdn.ampproject.org/c/s/mybroadband.co.za/news/cryptocurrency/517973-major-update-on-crypto-asset-service-provider-licensing-in-south-africa.html/amp”>published on November 30 by South African news outlet My Broadband. According to the publication, the FSCA plans to review submissions from 36 licensees at the December 12 Executive Licensing Committee meeting. Another 22 applications will be submitted on February 13. The last 14 applications will have to wait until March 12.
The Authority did not specify the destination of all the remaining requests, and explained its evaluation method as the combined evaluation of Know Your Customer incorporation, data protection, cyber risk management, conflict of interest management, management complaints and credit counterparty risk management. .
The FSCA also crypto%20Market%20Study.pdf” target=”_blank” rel=”noopener nofollow”>published its “crypto Asset Market Study” for 2023 on the same day, November 30. The study found that 60% of all cryptocurrencies traded in South Africa are so-called “unbacked cryptoassets,” meaning any cryptocurrency besides stablecoins (26% of market share) and non-fungible tokens (NFTs, 4 % of market share), and some types of centrally issued currencies.
Related: Kenyan lawmakers call on local Blockchain Association to introduce cryptocurrency bill
According to the survey, the average cryptoasset provider in South Africa (46%) has an annual income of between 1 and 50 million South African rand (between $53,000 and $2.7 million). And only 8% of all CASPs receive more than R100 million ($5.4 million).
Source: Cryptoasset Market Study 2023
The highest monthly transaction value in the South African crypto market was recorded in November 2022, when it peaked at over R8 billion (around $427 million).
In July 2023, the FSCA warned that any CASP in the country would need to obtain a license by the end of the year. For any of them operating without a license after the deadline, the regulator intends to take “enforcement action”, which may involve fines or even closure.
Magazine: This is your crypto brain. Substance abuse on the rise among cryptocurrency traders
