South Africa Approves 75 Crypto Firms, Binance's Future Unclear
South Africa's Financial Sector Conduct Authority (FSCA) has approved 75 crypto asset service providers (CASPs), aiming to protect investors and combat illegal activities. Prominent global exchanges like Luno and VALR are among the approved, while major entities such as Binance and Yellow Card are notably absent.
The FSCA's licensing initiative comes after a thorough evaluation of 374 applicants. Licensed firms now offer a diverse range of services, including advice, exchange management, and digital wallet maintenance. However, the FSCA has warned that firms operating without a license will be investigated and may face consequential actions.
Meanwhile, Binance faces significant regulatory challenges. The Central Bank of Nigeria alleges that Binance managed over $26 billion in untracked transactions. Binance has suspended operations in Nigeria due to these allegations. Binance's future in South Africa remains unclear, with no confirmation of rejection from the FSCA. Yellow Card, another major player, has submitted a request for authorization and anticipates receiving it soon.
The FSCA's approval of 75 CASPs marks a significant step in regulating South Africa's crypto market. While prominent exchanges like Luno and VALR have been approved, major entities like Binance and Yellow Card face regulatory hurdles. The FSCA's commitment to investigating unlicensed firms underscores its dedication to protecting investors and combating illegal activities.
