South Africa’s FSCA Confirms Licenses to 75 Crypto Service Providers

South Africa’s Financial Sector Conduct Authority (FSCA) confirmed Monday that it has, to date, granted crypto license to 75 institutions.

The confirmation from the regulator follows several crypto businesses claiming to be the first and only entity to receive license. The jurisdiction issues crypto asset service providers (CASPs) license under the Financial Advisory and Intermediary Services (FAIS) Act.

“The public is reminded that the FSCA’s licensing powers are limited to the authorization and supervision of CASPs only insofar as they render financial services related to crypto assets as defined under the FAIS Act.”

These services include advice, intermediary and investment management services, the notice read. FSCA added that it does not include recognition of crypto assets as legal tender.

“Any media reports implying otherwise are therefore incorrect as the South African Reserve Bank does not currently recognize crypto assets as currency,” the watchdog stressed.

Some of the entities that received crypto licenses include Luno, Altcoin Trader, VALR, among others.

The country received over 374 applications from CASPs, and after two years of laying the groundwork, has licensed only 75. “The FSCA will continue to provide regular updates as these applications are processed and approved,” the release added.

Binance Did Not Make FSCA’s Crypto License List

Binance, one of the world’s biggest crypto exchanges, however, did not make crypto license holders’ list in South Africa.

The exchange established its local presence in the country in July 2022. However, the exchange announced previously that it is terminating some services in South Africa to comply with regulations. The halting of services followed warning from the regulator about consumers’ risks in engaging with the “Binance Group”.

According to the FSCA, Binance is not authorized to offer any financial services or businesses in South Africa, and SA does not regulate crypto-related investments currently. Additionally, the South African Revenue Service (​​SARS) has imposed new taxes on cryptocurrencies by up to 45%.