The Financial Sector Conduct Authority (FSCA), South Africa’s main financial overseer, has checked out 128 paperwork from crypto asset service providers (CASPs). Still, only 36 of these will be focused on and tackled in the December meeting on the agenda.
On the last day of Nov, a report surfaced from the South African media group My Broadband. This report shared new data: the Financial Sector Conduct Authority (FSCA) plans to review proposals from 36 licensees.
Moreover, these reviews will happen during their Licensing Executive Committee meeting on Dec 12. After that, 22 more applications are lined up for presentation on Feb 13. The final 14 applications are predicted to be looked at on Mar 12.
The Financial Sector Conduct Authority (FSCA) hasn’t yet decided on the lingering requests. They detailed their examination process that packs a full check of customer onboarding methods, data safety, handling cyber threats, managing conflict of interests, taking care of complaints, and managing risk related to credit counterparties.
South Africa’s Crypto Landscape: FSCA Study Exposes Dominance Of Unbacked Assets In November 2023
The FSCA shared their “Crypto Assets Markets Study” for 2023 on Nov 30. The results show that 60% of all crypto traded in South Africa were so-called “unbacked crypto assets.” In simpler terms, any crypto besides stablecoins (representing 26% of the market), nonfungible tokens (or NFTs, amounting to 4% of the market), and certain centrally-issued coins.
On Nov 30, the FSCA released their 2023 “Crypto Assets Markets Study.” The findings indicated that 60% of all traded crypto in South Africa were what’s known as “unbacked crypto assets.” Simply put, these are any cryptocurrencies that aren’t stablecoins (they make up 26% of the market) or nonfungible tokens (also known as NFTs, making up 4% of the market). This also includes a few centrally issued coins.
In Nov 2022, the South African cryptocurrency market reached its zenith with a monthly transaction value surpassing 8 billion rand, equivalent to approximately $427 million. This marked the market’s highest recorded transaction value in a single month.
In the middle of 2023, the Financial Sector Conduct Authority (FSCA) issued a warning. This alerted all Crypto Asset Service Providers (CASPs) that they needed a license before the year was out. FSCA stated it planned to force “action” if they caught any CASP operating without a license past the set time frame. This action might include fines or even result in the business shutting down.
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