Accepting applications for licenses by authorities began a few weeks ago.
Post FTX’s demise, crypto exchanges and businesses have been under closer scrutiny.
Financial authorities in South Africa have recently demanded that cryptocurrency exchanges register by the end of the year or risk legal action.
By the end of the year, South Africa’s Financial Sector Conduct Authority has mandated that cryptocurrency exchanges submit applications for operational licenses. Since accepting applications for licenses began a few weeks ago, the financial regulator has received about 20 in total. The cut-off date is December 30.
Stringent Compliance Mandated
Until the deadline, the FSCA will conduct enforcement proceedings against firms that have applied for a license, according to FSCA Commissioner Unathi Kamlana. The businesses may be punished or ordered to shut down if they are found to be operating illegally.
Moreover, Binance, Luno (owned by Barry Silbert’s Digital Currency Group), and VALR, funded by Pantera Capital, are just a few of the big enterprises established in South Africa. These businesses are racing against the clock to get the necessary permits. South Africans were victims of some of the world’s greatest cryptocurrency frauds, which cost them billions.
The Financial Sector Conduct Authority (FSCA) is coordinating crypto regulation with an “inter-governmental fintech working group.” This group includes the National Treasury and the South African Reserve Bank.
After a series of crypto market failures and bankruptcies last year, regulators and lawmakers have agreed to strengthen regulations for the crypto industry. Since FTX’s demise, crypto exchanges and businesses have been under closer scrutiny.
In the meanwhile, the European Union’s (EU’s) Markets in Crypto-Assets (MiCA) legislation will help standardize the sector. Additionally, a new wave in the crypto industry was brought about by Hong Kong’s implementation of new legislation to license exchanges.