South Africa is on the brink of pioneering cryptocurrency regulation in Africa, with plans to mandate licenses for crypto exchanges, making it one of the first countries on the continent to do so. Around 60 digital asset platforms are anticipated to secure permits by the month’s end, ensuring compliance with regulatory standards. In an interview with Bloomberg, the Commission of the Financial Sector Conduct Authority (FSCA) unveiled this development today.

The FSCA has set a deadline of November 30 for exchanges to submit their licensing applications, with potential regulatory sanctions for non-compliance. Over 300 crypto-asset providers responded to the call for applications, indicating significant industry interest in official approval.

In a strategic maneuver, the FSCA has opted to integrate crypto exchanges into the existing Financial Advisory and Intermediary Services (FAIS) Act framework. This decision means that crypto platforms will be evaluated based on transparency, ethical conduct, competency, and operational ability, aligning with the FAIS Act’s rigorous ‘fit-and-proper’ requirements.

This regulatory milestone coincides with Bitcoin’s remarkable surge in value, hitting a record high of $73,664. The upward trajectory of Bitcoin underscores a broader trend of increasing investment and interest in cryptocurrencies, as evidenced by unprecedented investments in spot Bitcoin ETFs.

Under the new regulatory framework, consumers engaging with crypto exchanges will benefit from enhanced protections and avenues for recourse previously unavailable. The FSCA’s authority to enforce the FAIS Act’s standards ensures a safer environment for both operators and consumers in the digital asset space.