[2024-03-14] South African Regulator Set to Issue Licenses ...

[chmod755]

South African Regulator Set to Issue Licenses to 60 Crypto Platforms by End of March

A South African regulator has said it plans to issue licenses to 60 crypto platforms by the end of March. The Financial Sector Conduct Authority has said it is still processing the more than 300 applications it received late last year. South African regulators plan to oversee the activities of cryptocurrency entities through the Financial Advisory and Intermediary Services (FAIS) Act.

Regulator Received More Than 300 License Applications

South Africa reportedly plans to issue operating licenses to 60 cryptocurrency platforms by the end of the month. These licenses will be the first issued from the more than 300 applications that the Financial Sector Conduct Authority (FSCA) received before it closed the process on Nov. 30, 2023.

Meanwhile, Unathi Kamlana, the FSCA Commissioner, said his organization is still processing the applications. He added that more licenses are likely to be issued, but this will be done in a phased manner.

As previously reported by Bitcoin.com News, South African authorities have been warming to the idea of regulating crypto assets. The country’s declaration of crypto assets as financial products has helped to initiate a process to formalize the activities of crypto exchanges and other crypto-related businesses.

Recently, it was reported that the Intergovernmental Working Group (IFWG) plans to classify stablecoins as “a particular type of crypto asset” in its 2021 consultation paper. Additionally, the IFWG is examining the potential impact of tokenization on domestic financial markets.

Legal Recourse for Aggrieved Crypto Users
Speaking in an interview, the FSCA Commissioner suggested that South Africa has chosen to regulate the activities of crypto platforms using existing laws.

“If you wait for the Rolls-Royce kind of regulatory framework, you still have those risks anyway,” Kamlana said.

According to a report by Bloomberg, regulators in South Africa plan to oversee the activities of cryptocurrency entities through the Financial Advisory and Intermediary Services (FAIS) Act. This law will provide aggrieved South African consumers with legal recourse and protections that they have not previously had.

The same law also empowers regulators to pursue cryptocurrency entities that violate certain provisions of the FAIS Act. Kamlana added:

“As we license and supervise, we will discover that perhaps there are gaps that cannot be closed by the existing regulatory framework, the FAIS Act. And we might need to build on that as we discover what those are.”

Source: https://news.bitcoin.com/south-african-regulator-set-to-issue-licenses-to-60-crypto-platforms-by-end-of-march/

[Kakmakr]

South Africa has seen an increase in Ponzi schemes, where Bitcoin has been used as a payment option and millions of people has lost money through these Ponzi scheme operations.

So, it might be a good idea to regulate the Crypto currency scene to make it more difficult for them to operate. (People can report them and they can be taken down more quickly, if there are strict regulations in place)

The problem come in when the regulations start to limit Crypto adoption or if it is misused as a barrier to entry. (Bribing corrupt employees to get your Crypto company approved)