Alex Omenye
South Africa’s new crypto regulation will make it impossible for cryptocurrency exchanges to operate there without a licence, by November 30.
Bloomberg says that before the end of the year, South Africa’s Financial Sector Conduct Authority would mandate that all cryptocurrency exchanges there operate under licences.
The FSAC has set a deadline of November 30 for licence requests.
Unathi Kamlana, the commissioner of the FSAC, reports that since the exercise began, the regulator has received about 20 applications.
There are further plans for “enforcement action” that could result in fines or the closure of noncompliant businesses if they continue to operate after November 30.
As bitcoin authorities and legislators around the world continue to tighten the regulation belt around cryptocurrencies, South Africa becomes the first country on the continent to demand that digital asset exchanges get licences.
Luno and VALR, two of the biggest cryptocurrency trading exchanges on the continent are in South Africa. Other international platforms that operate in the country, including Binance, will also have to follow the new rules.
