The financial regulator of South Africa, according to Bloomberg, has announced that the cryptocurrency exchanges in the country will be required to obtain official licenses by November 30th of the current year.

Financial Sector Conduct Authority (FSCA) commissioner Unathi Kamlana said that the authority received around 20 license applications since the committee has been opened and does expect more applications to come through as the deadline approaches.

Kamlana also highlighted that if crypto exchanges in the nation continue to operate without an official license after November 30, the financial watchdog will take “enforcement action” which can involve hefty fines or the closure of firms which have been non-compliant.

This initiative would essentially mean that South Africa will become the first country in Africa to necessitate that digital asset exchanges shall obtain licenses amid increased regulatory scrutiny by crypto regulators across the globe; a first-mover advantage for the crypto-friendly nation which can increase the likelihood of gaining the characteristic as a regional crypto hub.

Sources:

https://cointelegraph.com/news/crypto-exchange-licences-south-africa-by-year-end

https://beincrypto.com/south-africa-crypto-exchanges-licenses-mandatory/

https://technext24.com/2023/07/04/cryptocurrency-exchanges-in-south-africa/