According to Bloomberg, South Africa is introducing new rules that mandate official licenses for cryptocurrency exchanges. The region's financial regulator, the Financial Sector Conduct Authority (FSCA), has already received about 20 license applications and expects more before the November 30th deadline.
This move is aimed at protecting consumers from potential risk associated with crypto products. Exchanges that continue to operate without a license after the deadline may face closure or fines.
South Africa becomes the first African country to enforce licensing for digital asset exchanges. Prominent trading platforms like Luno and VALR, as well as global exchanges like Binance, operate within the region and will need to secure the necessary licenses.
This regulatory initiative aligns with a global trend of increasing regulation in the cryptocurrency sector in response to various crypto scams and company collapses. As part of their efforts, the FSCA is also actively engaged in consumer education and public awareness campaigns about the risks and precautions associated with cryptocurrency investments.
Learn more about crypto regulation around the world