South African Regulatory Authority Anticipates Verdict on 50 Cryptocurrency License Applications in Near Future

The Fate of Crypto License Applicants in South Africa to Be Decided Soon

The Financial Sector Conduct Authority (FSCA), South Africa’s financial industry watchdog, is expected to make a decision on the license applications of around 50 crypto firms in the coming weeks. Out of the 100 entities that initially applied, 20 have withdrawn their applications.

The Expensive Process of Obtaining a License

Gherhard van Deventer, the head of enforcement at the FSCA, mentioned that some applicants may have withdrawn due to the high cost of obtaining a financial service provider (FSP) license. He stated that finding an appropriate key individual with the relevant experience, qualifications, and skills was a challenge for many applicants.

Failure to Meet Key Requirement

The FSCA’s head of enforcement revealed that some withdrawing applicants realized they could not meet the requirement of having a suitable key individual. This is because the crypto industry is relatively new, and individuals with specific expertise in the field are limited. Some applicants have indicated that they will reapply once they find a suitable individual.

Regulatory Changes to Tackle Scammers

The FSCA has proposed regulatory amendments to address scammers operating outside its regulatory boundaries. These changes aim to prevent entities from avoiding regulation in their activities. The FSCA is determined to crack down on fraudulent activities in the crypto industry.

Hot Take: The Fate of South African Crypto Firms Hangs in the Balance

The Financial Sector Conduct Authority (FSCA) in South Africa is nearing a decision on the license applications of 50 crypto firms. The withdrawal of 20 applicants may indicate the challenges and costs associated with obtaining a financial service provider (FSP) license. Finding individuals with the necessary qualifications and skills in the crypto industry has proven to be a hurdle for many aspiring crypto firms. However, the FSCA remains committed to ensuring the regulation of crypto activities and preventing fraud in the industry.