#SouthAfricaCrypto #CryptocurrencyRegulation #CryptoLicense #FSCA #CryptoFirms #BitcoinNews #FinancialWatchdog #CryptoMarket
The chief enforcement officer at South Africa’s financial sector watchdog, the Financial Sector Conduct Authority (FSCA), recently declared that the agency plans to determine the fate of fifty cryptocurrency firms’ license applications within the coming weeks. Gerhard van Deventer, the FSCA’s chief enforcement officer, mentioned that from the more than ninety applicants, twenty have since withdrawn. This disclosure came after the FSCA received approximately 93 applications a few days before the November 30 deadline. This total eventually surged to 105 as both current FSP license holders and new applicants showed interest. Manifold applicants, however, decided against pursuing the license and some even chose to operate outside the South Africa market.
During a podcast, Deventer agreed with the notion that some applicants may have chosen to retreat due to the cost involved in obtaining the FSP license. Furthermore, he pinpointed that a significant number of the withdrawing applicants quit the procedure upon realizing the burden around getting the license. Deventer argued that many applicants were unlikely to fulfill the pivotal requirement of possessing an appropriate key individual with specific and relevant experience, qualifications, and skills in the cryptocurrency sector. He also shared that some of the applicants articulated their intention to reapply only when they find a suitable individual to fulfill this requirement. In conclusion, Deventer stated that the purpose of changes introduced by the FSCA to regulations was to tackle those choosing to operate outside the regulatory periphery, making it impossible for such entities to perimeter the regulation of their undertakings once the new regulations come into force.
Image: https://weeklyfinancenews.online/wp-content/uploads/2024/01/Screen-Shot-2024-01-02-at-12.25.49.png
Comments are closed.