According to Bloomberg, the financial regulator of South Africa is prepared to issue licenses to 60 cryptocurrency companies.🇿🇦
After introducing a new framework last year, the regulator received applications from 300 companies seeking to start or continue operations in the country.
Following South Africa’s announcement in 2022 to classify cryptocurrency as a financial product instead of creating a new regulatory regime for crypto assets, the country plans to oversee this sector in accordance with the Financial Advisory and Intermediary Services Act (FAIS). ⚖
The FAIS Act includes provisions aimed at ensuring the fairness and integrity of companies, with the primary goal of protecting consumers. However, South Africa is considering the need for a stablecoin regime. This means that cryptocurrency companies and investors will be subject to increased government regulation and oversight.
Currently, license applications are being processed in stages.
Companies that have been denied have the opportunity to request a review under existing legislation.