South Africa's FSCA authorizes 75 Institutions as crypto asset service providers

The Financial Sector Conduct Authority (FSCA) has officially confirmed the list of currently approved Crypto Asset Service Providers (CASPs). In response to misleading statements in the media claiming exclusivity in licensing, the FSCA clarifies that it has approved a total of 75 institutions as CASPs under the Financial Advisory and Intermediary Services (FAIS) Act, No. 37 of 2002. The comprehensive list of licensed CASPs is available on the FSCA's website.

The licensing process for CASPs began on June 1, 2023, with existing institutions offering financial services related to crypto assets required to submit their applications by November 30, 2023. The FSCA has received 374 license applications to date and continues to review new and existing CASPs applications, providing regular updates on approvals.

Crypto assets are digital representations of value that can be traded, transferred, or stored electronically by individuals and entities for various purposes. These assets utilize cryptographic techniques and distributed ledger technology. It's important to note that the FSCA's licensing authority is limited to overseeing CASPs providing financial services related to crypto assets as defined by the FAIS Act, such as advisory, intermediary, and investment management services. This authorization does not extend to recognizing crypto assets as legal tender or "cryptocurrency."

Media reports suggesting otherwise are inaccurate, as the South African Reserve Bank does not currently acknowledge crypto assets as currency.