Get Ready for the Licensing of 60 Crypto Firms in South Africa – Coming Soon!

South Africa to Award Licenses to 60 Crypto FirmsnnSouth Africa’s financial regulator is set to award licenses to 60 crypto firms, Bloomberg reported on Wednesday. The news comes as the regulator received applications from 300 firms since its new framework commenced last year.nnIn an interview with Bloomberg, Financial Sector Conduct Authority Commissioner (FSCA) Unathi Kamlana said that they are processing the licensing applications in a phased manner given the number of applications received.nnLast year, South Africa’s Treasury proposed new regulations for the crypto sector, aiming to protect investors and curb illicit activities. The new rules would subject crypto firms to a new set of legal obligations that include: complying with Anti-Money Laundering (AML) regulations, appointing a compliance officer, and adhering to capital requirements. The new regulations are expected to be enacted in the first quarter of this year.nnSouth Africa to Treat Cryptocurrency as a Financial ProductnnThe new regulatory regime in the country will make South Africa one of the first jurisdictions to treat cryptocurrencies as financial products. Cryptocurrencies such as Bitcoin, Ethereum, and Ripple will fall under the Financial Advisory and Intermediary Services Act, and will be regulated by the FSCA.nnThis has been met with skepticism from some in the crypto community, who argue that this increased regulation may stifle innovation and growth in the sector. However, others believe that greater regulation will provide more legitimacy to the industry and attract institutional investors.nnCurrently, South Africa has no clear regulatory environment for cryptocurrencies and it is not illegal to buy, sell, hold or trade cryptocurrencies. However, the new regulations will bring greater clarity to the industry and will require firms to operate with greater transparency and scrutiny.nnConclusionnnSouth Africa’s new regulations for the crypto industry are set to provide greater clarity and accountability for market participants. The FSCA’s decision to award licenses to 60 crypto firms highlights the growing interest and potential for cryptocurrencies in the country. With these new regulations, South Africa is taking a progressive step towards embracing cryptoassets as a legitimate financial product.

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