The FSCA has received about 20 applications since it began issuing licenses a few weeks ago, and more are expected before the Nov. 30 deadline, said Unathi Kamlana of the regulator.<br
Kamlana said the FSCA plans to take “enforcement action,” which could result in firms being shut down or fined if they continue to operate without a license after the deadline.
“There are potentially serious risks to customers when using crypto products, so it makes sense to introduce a regulatory framework. Time will show the effectiveness of our measures, and we will continue to work to improve and make changes where and if necessary,” he explained.
Several of the continent’s largest trading venues are based in South Africa, including Luno, owned by Barry Silbert’s Digital Currency Group. Other platforms, such as Binance, plan to obtain licenses in the country.
The International Monetary Fund (IMF) recently demanded that African countries protect citizens as soon as possible from the loss of funds and the influence of cryptocurrency fraudsters.
In response to the demands, South Africa has already set up a special forensic unit to help law enforcement investigate financial crimes, including blockchain and digital assets.<br