The Financial Sector Conduct Authority (FSCA) has unveiled a comprehensive list comprising 75 approved crypto asset service providers (CASPs), marking a significant stride in regulatory oversight within the burgeoning cryptocurrency landscape.
This development follows recent assertions in various media quarters by certain entities proclaiming themselves as the premier or sole licensed crypto asset service providers under the aegis of the Financial Advisory and Intermediary Services (FAIS) Act, No. 37 of 2002.
In a decisive response, the FSCA moved to dispel any misconceptions, affirming that it has thus far sanctioned a total of 75 institutions for CASP licensure, solidifying its regulatory framework in this dynamic sector.
The roster of licensed CASPs is readily accessible via the FSCA’s official website, providing transparency and accessibility to stakeholders.
Initiated on June 1, 2023, the rigorous licensing procedure required extant entities offering financial services linked to crypto assets to lodge their license applications by November 30, 2023.
“The FSCA remains vigilant, actively processing both new and existing CASP applications, with 374 license applications received to date,” affirmed the regulatory body in a released statement.
Continuing its commitment to transparency, the FSCA pledges to furnish regular updates as these applications undergo meticulous scrutiny.
A crypto asset, as defined by the FSCA, encompasses a digital representation of value devoid of central bank issuance but exchangeable, transferable, or storable electronically by individuals and legal entities for transactional, investment, and other utilitarian purposes, underpinned by cryptographic techniques and distributed ledger technology.
Notably, the FSCA emphasized the confines of its licensing jurisdiction, solely extending to the authorization and oversight of CASPs offering financial services pertaining to crypto assets, encompassing advisory, intermediary, and investment management functions.
“This authorization does not confer recognition upon crypto assets as legal tender or ‘cryptocurrency,’ debunking any assertions to the contrary, given the South African Reserve Bank’s stance of non-recognition of crypto assets as currency,” elucidated the FSCA.
In a significant milestone for the South African cryptocurrency landscape, Luno, one of the nation’s premier and longstanding crypto asset service providers, disclosed its attainment of licensure from the FSCA to operate as a financial services provider.
Christo de Wit, Luno’s country manager for South Africa, hailed this achievement, remarking, “As a pioneering entity with over a decade of experience in the crypto domain, Luno is honored to emerge as the inaugural licensed crypto asset service provider in our nation.”
He underscored Luno’s unwavering commitment to compliance, safety, and customer security, affirming these pillars as foundational in their trajectory and future endeavors, aimed at expanding their suite of offerings to cater to evolving market demands and fortify the financial landscape for all stakeholders.
