- Platforms must register in the region by the end of 2023
- The regulator has now received about 20 license applications
According to information provided by the financial regulator, South Africa will set a requirement that crypto exchanges operating in its territory must be licensed by the end of this year.
In May, the Financial Industry Regulatory Authority said cryptocurrency companies that plan to operate in South Africa must submit license applications within six months. As a result, the FSCA has received a total of 20 applications that comply with these requests and expects more by Nov. 30
After the deadline, the regulator can take “enforcement action,” such as fines or the closure of companies that continue to operate without a license. Sanctions could include a fine of 10 million South African rand (approximately $510 million) or imprisonment for up to 10 years, or a combination of both penalties.
FSCA Commissioner, Unati Kamlana, said:
“To protect financial customers, the introduction of regulatory regulation on cryptocurrencies is being considered.. We are aware of the potential risks associated with their use and want to ensure the safety of. We will evaluate the effectiveness of the measures taken, and we will continue to work with the industry to improve and make necessary changes in the relevant areas.”
He added that in the field of cryptocurrencies, losing a significant amount of money is possible, so before putting yourself at risk, you should “carefully consider and think it through.”
The growing regulation is not only relevant in South Africa. Yesterday, the Monetary Authority of Singapore (MAS) ordered crypto exchanges to continue placing client funds in trusts until the end of the year.