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South Africa’s financial regulator has mandated that crypto exchanges must obtain licences to operate in the country by the end of the year, Bloomberg News reported.
Crypto exchanges that refuse to comply with the directive will face penalties, including fines or permanent closure, Financial Sector Conduct Authority (FSCA) Commissioner Unathi Kamlana told Bloomberg in an interview. Already 20 crypto exchanges are applying for licenses, he said.
This recent development highlights the ongoing trend of increased regulatory actions in the crypto space. A few days earlier, the Monetary Authority of Singapore announced that all cryptocurrency exchanges in the city must provide statutory trusts to secure customer assets. The Asian nation also mentioned the need for investor protection and risk mitigation.
1️⃣ #Crypto Safety First:
👉 Singapore's central bank, the Monetary Authority of Singapore (MAS), is introducing groundbreaking measures to safeguard crypto investors' assets and boost market confidence. pic.twitter.com/DGecBTMV7g
— Keyur Rohit (@CryptoKingKeyur) July 3, 2023
Not Just Crypto Exchanges
South Africa’s new license regime will require exchanges like Luno, VALR, and even Binance to adhere to the new requirement or stop or halt services in the country. And it’s not just crypto exchanges that will be affected by the new licensing requirement. The FSCA also said that individuals or companies offering crypto-related financial services will need to obtain appropriate licences. This excludes the country’s crypto mining companies and non-fungible token (NFT) service providers.
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