The South African financial regulator has been busy processing applications for crypto asset service provider (CASP) licenses, with a total of 248 licenses issued out of the 420 applications received. This news comes after the Financial Sector Conduct Authority (FSCA) revealed that 56 applications are still under review, while nine have been rejected. Additionally, 106 entities withdrew their applications after concerns were raised about their business models.
It has been just over a year since the FSCA closed the application window, and the number of issued licenses has steadily increased since then. Initially, the FSCA received applications from 93 entities, but this number decreased as some applicants withdrew. By April 2024, the total applications had reached 374, with 75 licenses granted. A few months later, an additional 63 applications were approved. The FSCA has made it clear that entities with rejected applications have the opportunity to reapply if they can meet the necessary criteria.
For entities whose applications were rejected or withdrawn, the FSCA has imposed restrictions on undertaking any CASP-related activities as defined under the FAIS Act. However, this does not apply to institutions or persons that submitted their license applications by November 30, 2023, and are still awaiting a final decision from the FSCA.
In addition, the FSCA has extended the exemption period for CASPs to comply with certain regulatory requirements from November 11, 2024, to June 30, 2025. Failure to comply with these requirements could result in suspension or withdrawal of authorization.
Overall, the FSCA’s efforts to regulate the crypto asset industry in South Africa are aimed at ensuring the integrity and security of financial transactions within the country. With the issuance of 248 CASP licenses and ongoing reviews of applications, the FSCA is taking proactive steps to create a transparent and compliant environment for crypto asset service providers.