South Africa’s Crypto Industry Grows as 63 Firms Receive Licenses

The Financial Sector Conduct Authority (FSCA) of South Africa has approved licenses for 63 new cryptocurrency firms, enabling them to operate within the country and expand their global reach. The regulator initiated the licensing process in March after receiving a surge of applications from crypto companies.

With these new approvals, the total number of licensed crypto asset service providers (CASPs) in South Africa now stands at 138. Despite approving 75 firms in April, the FSCA continues to receive applications from both new and existing crypto firms, with a total of 383 applications received to date.

“A further 80 applications have been voluntarily withdrawn by applicants following engagements with the FSCA on the appropriateness of their respective business and operating models. The remaining applications continue to be under consideration.”

The FSCA had declined five applications due to either a lack of clear business models and services or insufficient experience and knowledge of crypto assets. An additional 80 applications were voluntarily withdrawn following discussions with the FSCA regarding the suitability of their business and operating models. The remaining applications are currently under review.

In 2022, the FSCA classified crypto assets as financial products, a pioneering move in Africa. However, the FSCA’s authority is limited to licensing and overseeing crypto asset service providers, and it does not have the power to recognize crypto as legal tender, a status currently held only by El Salvador and the Central African Republic (CAR).

South Africa’s proactive approach to regulating the crypto sector is setting a precedent in Africa. While the FSCA continues to evaluate applications and refine its regulatory framework, the growing number of licensed CASPs signals a maturing market that balances innovation with consumer protection.

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