South Africa plans to take enforcement action against crypto exchanges operating without a license by the end of 2023.
This year, the countries are focused on bringing crypto under regulatory control. Various countries have made the licensing requirements compulsory for crypto exchanges.
South Africa Warns Enforcement Action Against Crypto Exchanges
According to Bloomberg, South Africa plans to make licensing mandatory for crypto exchanges by the end of the year. The country recently started taking applications for licensing with a deadline of November 30. So far, it has received 20 applications and expects more.
Unathi Kamlana, the Financial Sector Conduct Authority (FSCA) Commissioner, has warned that the regulators might take enforcement actions such as fining or closing down crypto exchanges that operate without licensing.
The FSCA would also work with industry stakeholders to amend the regulatory framework whenever necessary. Kamlana explained:
“There is potentially serious harm to financial customers when using crypto products, and therefore it makes sense for us to introduce the regulatory framework.”
Some popular exchanges in South Africa are Binance, Digital Currency Group’s Luno, and VALR crypto exchange.
South Africa has been working towards crypto regulations since last year. In October 2023, the FSCA declared crypto assets as financial products. Then in January this year, the country introduced new rules for crypto advertisements to protect investors.
Learn more about the drawbacks and benefits of crypto regulations here.
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