South Africa plans to license around 60 cryptocurrency platforms by the end of March. According to a report by Bloomberg, this initiative by the Financial Sector Conduct Authority (FSCA) highlights the country’s proactive approach to regulating the burgeoning crypto sector.
The FSCA revealed that the response has exceeded expectations, with more than 300 crypto-asset providers seeking regulatory approval. The deadline for applying for the licenses is set for November 30.
Rather than developing a stand-alone regulatory framework for crypto operators, the FSCA has chosen to utilize the existing Financial Advisory and Intermediary Services Act. The regulator aims to strengthen consumer protection and accountability within the sector by crypto exchanges under its purview
regulation .
The new guidelines provide an appeal in particular in case of violations or misconduct by the crypto platforms’ operators. This regulatory oversight aims to instill investor confidence and mitigate potential risks associated with crypto trading.
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The Commissioner, Unathi Kamlana, acknowledged that while the regulation serves as a robust foundation for crypto oversight, ongoing oversight may reveal gaps that necessitate additional measures. As the FSCA continues to license and monitor crypto platforms, it remains open to refining regulatory frameworks to effectively address emerging challenges.
Last year, South Africa authorized all crypto exchanges operating within the country to register with the FSCA. Failure to comply with this directive may result in enforcement actions, such as fines or business closure. The new regulations aim to protect investors from potential fraud and ensure greater accountability within the digital asset space.
South Africa Regulates Crypto
The order from the FSCA affects major cryptocurrency exchanges such as Binance, Coinbase, Kraken and KuCoin, all of which currently operate in the region. This move followed a few reported cases of fraud, including the infamous Africrypt incident where $3.6 billion worth of Bitcoins went missing due to alleged hacking.
In addition, the FSCA’s decision to tighten regulations is influenced by previous investigations, such as the investigation into Mirror Trading International (MTI), a cryptocurrency trading network operating in South Africa. Previously, the US Commodities and Futures Trading Commission sued MTI for its involvement in what it called “the largest fraudulent scheme involving Bitcoin.”
South Africa plans to license around 60 cryptocurrency platforms by the end of March. According to a report by Bloomberg, this initiative by the Financial Sector Conduct Authority (FSCA) highlights the country’s proactive approach to regulating the burgeoning crypto sector.
The FSCA revealed that the response has exceeded expectations, with more than 300 crypto-asset providers seeking regulatory approval. The deadline for applying for the licenses is set for November 30.
Rather than developing a stand-alone regulatory framework for crypto operators, the FSCA has chosen to utilize the existing Financial Advisory and Intermediary Services Act. The regulator aims to strengthen consumer protection and accountability within the sector by crypto exchanges under its purview
regulation .
The new guidelines provide an appeal in particular in case of violations or misconduct by the crypto platforms’ operators. This regulatory oversight aims to instill investor confidence and mitigate potential risks associated with crypto trading.
Keep reading
The Commissioner, Unathi Kamlana, acknowledged that while the regulation serves as a robust foundation for crypto oversight, ongoing oversight may reveal gaps that necessitate additional measures. As the FSCA continues to license and monitor crypto platforms, it remains open to refining regulatory frameworks to effectively address emerging challenges.
Last year, South Africa authorized all crypto exchanges operating within the country to register with the FSCA. Failure to comply with this directive may result in enforcement actions, such as fines or business closure. The new regulations aim to protect investors from potential fraud and ensure greater accountability within the digital asset space.
South Africa Regulates Crypto
The order from the FSCA affects major cryptocurrency exchanges such as Binance, Coinbase, Kraken and KuCoin, all of which currently operate in the region. This move followed a few reported cases of fraud, including the infamous Africrypt incident where $3.6 billion worth of Bitcoins went missing due to alleged hacking.
Additionally, the FSCA’s decision to tighten regulations is influenced by previous investigations, such as the investigation into Mirror Trading International (MTI), a cryptocurrency trading network operating in South Africa. Previously, the US Commodities and Futures Trading Commission sued MTI for its involvement in what it called “the largest fraudulent scheme involving Bitcoin.”
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