The Financial Sector Conduct Authority (FSCA) has taken a decisive step in the regulation of cryptocurrency by releasing a comprehensive list of 75 licenses granted to crypto asset service providers (Casps), countering assertions of exclusivity made by some entities.
In a statement, the FSCA addressed the media assertions, clarifying, “The FSCA has noted various statements in the media by certain institutions indicating they are the first or only institutions currently licensed as crypto asset service providers under the Financial Advisory and Intermediary Services Act. For completeness, the FSCA wishes to clarify and confirm that it has, to date, approved a total of 75 institutions to be licensed as Casps.”
Prominent players such as VALR, Luno, and AltCoinTrader headline the list, alongside crypto arbitrage firms Future Forex and Currency Hub, with alternative investment group Jaltech securing three licenses.
The inclusion of wealth management, advisory, and asset management companies underscores the broad spectrum of entities entering the crypto space, with names like Efficient Private Clients, Exclusive Advisory Services, Graphite Asset Advisory, Indexa South Africa, Liquid Bridge Fund, Momentum Consult, and Peresec Prime Brokers making notable appearances.
A primary objective of licensing Casps is to curb fraudulent schemes like Mirror Trading International and Africrypt, with the FSCA emphasizing the public’s ability to verify the licensing status of companies through the published list.
The Casp licensing initiative commenced in June the previous year, with a deadline of November 30, 2023, for companies offering financial services linked to crypto assets to submit their license applications.
With 374 license applications received thus far, the FSCA affirms its commitment to ongoing processing, pledging regular updates to the list as further approvals are granted.
The regulatory authority underscores the limitations of its licensing authority, which extends solely to authorization and supervision of Casps offering financial services related to crypto assets, excluding recognition of crypto assets as legal tender or ‘cryptocurrency’ as defined by the South African Reserve Bank.
“Any media reports implying otherwise are therefore incorrect as the South African Reserve Bank does not currently recognize crypto assets as currency,” reiterated the FSCA, reiterating the regulatory landscape’s delineations.
