South Africa is making a move towards regulating the crypto industry by issuing licenses to crypto companies. The Financial Sector Conduct Authority (FSCA) has agreed, aiming to reduce crime in the financial landscape. This way, they would be better able to protect South African consumers and combat money laundering and other criminal activities.

Licensing Crypto Platforms

Various crypto trading platforms have received licenses, allowing them to freely offer crypto services. Although these companies have existed for a while, South African consumers are now also part of their potential target audience. Decentralized marketplaces have received a different type of license, similar to those of financial institutions, which allows them to manage investments and hold customer value. They must adhere to stricter rules for DeFi (Decentralized Finance) services.