Majority of South African Crypto Firms Rely on Trading Fees for Revenue
According to a study by the South African Financial Sector Conduct Authority (FSCA), only five percent of surveyed crypto asset financial service providers (FSPs) in South Africa are generating revenue between $8 million and $10 million, with the majority earning income from trading fees.
The study revealed that approximately 46% of crypto asset FSPs generated revenues ranging from $53,000 to $2.68 million, while 38% reported revenue below $53,000. Out of the respondents, 10% derived their income from both regulated and unregulated financial services. The FSCA, which conducted the study with 47 participating crypto asset FSPs, aims to assess consumer exposure to crypto assets and identify potential risks to consumer well-being.
Additionally, the study found that 49% of surveyed crypto-asset FSPs operate a crypto exchange, 19% provide advisory services, 15% are crypto brokers, and only 2% offer custodial services. The FSCA has received 93 license applications, and during a recent media briefing, it noted that some applicants decided to conduct their business outside South Africa, while others submitted applications just days before the November 30 deadline.
Clever Robot News Desk 5th December 2023
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