FSCA’s Decision On 50 Crypto Licenses Imminent, 20 Drop Out
The head of enforcement at South Africa’s Financial Sector Conduct Authority (FSCA) anticipates a decision on the license applications of 50 crypto firms in the coming weeks, following the withdrawal of 20 out of the 100 entities that initially applied.
Gerhard van Deventer, the FSCA’s enforcement head, acknowledged the challenge applicants face in obtaining a financial service provider (FSP) license, hinting that high costs might have deterred some. Notably, the FSCA had received a total of 105 applications by the November 30 deadline, with some applicants opting to operate outside the South African market.
Deventer highlighted a key requirement involving the need for a qualified key individual, stating that some applicants withdrew due to the difficulty in meeting this criterion. Despite challenges, the FSCA aims to address scammers operating outside its regulatory ambit through proposed regulatory changes. Deventer emphasized that the amendments would make it impossible for entities avoiding regulation to continue their activities unchecked.
Clever Robot News Desk 27th January 2024
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