South Africa’s financial regulator, the Financial Sector Conduct Authority (FSCA), has announced that all cryptocurrency exchanges in the country will be required to obtain licenses by the end of this year, as reported by Bloomberg.
According to FSCA commissioner Unathi Kamlana, the agency has already received around 20 license applications since opening the process, and more are expected before the November 30 deadline.
Kamlana emphasized that if crypto exchanges continue to operate without a license after the deadline, the regulator plans to take “enforcement action,” which may involve fines or the closure of non-compliant firms.
The move to introduce a regulatory framework for crypto products in South Africa is seen as a prudent approach to mitigate potential risks to financial consumers.
Kamlana acknowledged the importance of allowing time to evaluate the effectiveness of these measures while expressing a commitment to ongoing collaboration with the industry to refine and implement necessary changes.
This development positions South Africa as the first country on the African continent to mandate licensing for digital asset exchanges, reflecting a broader global trend of tightening regulations in the crypto space by regulators and policymakers.
