The Financial Sector Conduct Authority (FSCA) has released a list of 75 approved crypto asset service providers.
This comes after the FSCA said that it had noted statements in the media by certain institutions indicating that they were the first or only institution currently licensed as crypto asset service providers (CASPs), under the Financial Advisory and Intermediary Services (FAIS) Act, No. 37 of 2002.
The FSCA clarified and confirmed that it had to date approved a total of 75 institutions to be licensed as CASPs.
The full list of licensed CASPs may be accessed on the FSCA’s website or by clicking here.
“The licensing process for CASPs commenced on 1 June 2023. Existing institutions that were rendering financial services relating to crypto assets were required to submit their licence applications by 30 November 2023. The FSCA continues to receive and consider applications from new and existing CASPs. 374 licence applications have been received to date,” the FSCA said in a statement.
The FSCA will continue to provide regular updates as these applications are processed. An approved Crypto asset is defined as a digital representation of value that:
- is not issued by a central bank but is capable of being traded, transferred or stored electronically by natural and legal persons for the purpose of payment, investment and other forms of utility;
- applies cryptographic techniques; and • uses distributed ledger technology.
The FSCA also reminded the public that its licensing powers were limited to the authorisation and supervision of CASPs, only insofar as they rendered financial services related to crypto assets as defined under the FAIS Act, i.e., advice, intermediary and investment management services.
“This authorisation does not include the recognition of crypto assets as legal tender or “cryptocurrency”. Any media reports implying otherwise are therefore incorrect as the South African Reserve Bank does not currently recognise crypto assets as currency,“ the FSCA further said.
Last week, one of the country’s largest and oldest crypto asset service provider, Luno said it had secured a license from the FSCA to operate as a financial services provider.
The company said in a statement, “Luno is the first dedicated crypto asset service provider in South Africa to be awarded its financial services provider licence following the FSCA’s declaration of crypto assets as a financial product in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS).”
Christo de Wit, Luno’s country manager for South Africa, said, “As a homegrown trailblazer with more than ten years of experience in the crypto market, Luno is thrilled to be the first licensed crypto asset service provider in the country. This is a positive step for both the cryptocurrency industry and South Africans. Compliance, safety and security for our customers have driven our growth since the beginning and will continue to be priorities as we expand our offering to introduce more features and products for financial institutions.”
BUSINESS REPORT