South Africa Prepares New Regulations, 50 Crypto Companies Wait For Green Light From Regulators

JAKARTA - The Financial Sector Conduct Authority (FSCA), the supervisory authority of South Africa's financial industry, will soon determine the fate of the approximately 50 crypto companies that apply for licenses to operate in the country. This was revealed by runny van▁putratter, head of law enforcement at FSCA, in a podcast on January 24.

According toUNGter, of the 105 applicants who registered before the deadline of November 30, 20 of them had withdrawn for various reasons. Most of them cannot meet the key requirements for obtaining a financial service provider (FSP) license, namely having a key individual who has experience, qualifications, and skills relevant to the crypto field.

"And not many are eligible if you consider that crypto hasn't existed long ago," said kopitter.

Some applicants who fail to meet these requirements say that they will re-submit a request when they find the appropriate individuals. However,BEnnyter said that it would not be easy due to limited human resources in the crypto industry.

New Regulations To Prevent Fraud

In addition, Sajanter also said that the FSCA is preparing new regulations to regulate crypto activities in South Africa. This regulation aims to prevent fraud and protect consumers from crypto-related risks.

tter said that many entities operate outside the scope of FSCA regulations deliberately to avoid responsibilities and legal obligations. He gave the case of Mirror Trading International (MTI), a Ponzi scheme that deceives more than 28,000 investors by promising big profits from crypto trading.

"After the new regulations are implemented, it is no longer possible for these entities to avoid regulation on their activities. They must comply with the same rules as other financial service providers," saidPPEHTER.

This new regulation is expected to increase public confidence in the crypto industry in South Africa, which is one of the largest crypto markets on the African continent. According to data from Useful Tulips, the trading volume of crypto peer-to-peers (P2P) in South Africa reached more than $1.6 million (IDR 22.8 billion) per week in January 2024.