South Africa Sets Deadline for Mandatory Crypto Exchange Registration

South Africa Crypto
Summary: South African regulators have set a deadline of December 30th for cryptocurrency exchanges to register or face legal action. If found unlawfully, companies may face fines or closure. The FSCA is handling crypto regulation as part of an inter-governmental fintech working group.

South African regulators have recently issued a deadline of December 30 for crypto exchanges to register or face legal action.

The Financial Sector Conduct Authority of South Africa has set a deadline of December 30th for cryptocurrency exchanges to apply for business licenses. The financial authority has received about 20 applications for licenses since it started accepting them a few weeks ago. The last day of compliance is December 30.

According to FSCA Commissioner Unathi Kamlana, the agency would pursue enforcement actions against companies that have filed for a license up to the deadline. If the companies are discovered to be operating unlawfully, they may face fines or be forced to close.

Race Against Time

Several large companies have set up business in South Africa, including Binance. It’s a race against the clock for these companies to get their permits in order. South Africans lost billions to some of the largest crypto scams ever.

As part of an “inter-governmental fintech working group” that also includes the National Treasury and the South African Reserve Bank, the Financial Sector Conduct Authority (FSCA) is handling crypto regulation.

Increased Scrutiny

Regulators and politicians have decided to improve crypto business laws after a string of market failures and bankruptcy. Cryptocurrency exchanges and companies have been under increased scrutiny after FTX’s implosion. Markets in Crypto-Assets (MiCA) regulation in the European Union (EU) will assist standardize the industry in the meanwhile.

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Naseem Sheikh