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The US Securities and Exchange Commission’s crackdowns against crypto assets continue to pose challenges for crypto exchanges and companies around the globe. After Australia and Europe, crypto exchanges facing pressure in Africa. Now, South Africa’s financial regulator has asked crypto exchanges to register by year-end or else face enforcement actions.
South Africa Requires Crypto Exchanges To Apply for Licenses
South Africa Financial Sector Conduct Authority orders crypto exchanges to apply for licenses to continue operating in the country by year-end. The financial regulator received about 20 applications since opening doors for licenses a few weeks ago. The deadline is November 30.
FSCA Commissioner Unathi Kamlana said it will take enforcement actions against companies with a license application until the deadline. The companies can be forced to close down or fined for operating without licenses.
“There is potentially serious harm to financial customers when using crypto products, and therefore it makes sense for us to introduce the regulatory framework. Time will tell the effectiveness of our measures, and we will continue to work together with the industry to refine and make changes where and if necessary.”
South Africa has several major companies such as Binance, Barry Silbert’s Digital Currency Group-owned Luno, and Pantera Capital-backed VALR. These firms need to secure licenses before the deadline. South Africa witnessed several of the world’s largest crypto scams that led investors to lose billions of dollars in investments.
The FSCA working on crypto oversight with an “inter-governmental fintech working group” including the country’s financial regulators and policymakers such as National Treasury and the South African Reserve Bank.
Also Read: Elon Musk’s Twitter Restricting TweetDeck Access Causing Exodus Of Crypto Community
Crypto Regulatory Tightening Across the World
Regulators and policymakers agree to tighten rules for the crypto market following the crypto contagion last year causing a number of collapses and bankruptcy filings. The collapse of FTX led to heightened scrutiny of the crypto exchanges and firms.
Meanwhile, the EU’s Markets in Crypto-Assets (MiCA) regulation will help regulate the crypto industry in the region. Moreover, Hong Kong implemented new regulations to license exchanges, bringing a new wave in the crypto market.
Also Read: Terra Luna Classic Announces Bug Bounty Program, Is LUNC $0.001 Next?
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