South Africa edging closer to issuing VASP licenses: FSCA official
South Africa is on the brink of issuing its first-ever digital asset licenses, as revealed by a senior official from the country's financial regulator.
Gerhard van Deventer, who heads the enforcement division at the Financial Services Conduct Authority (FSCA), disclosed in an interview that the issuance of #virtual Asset Service Provider (VASP) licenses is imminent.
The FSCA had announced last year that all VASPs operating in the country must apply for a license under a new regulatory framework. The deadline for applications was set for November 30, 2023.
Van Deventer stated that a total of 145 applications were received by the deadline. Out of these, 50 applications were reviewed by the licensing committee in December, with outcomes expected in the coming weeks.
The number of applications disclosed by Van Deventer exceeded previous reports, which had estimated 36 applications presented to the licensing committee. The discrepancy suggests a higher level of interest and engagement from VASPs.
While the licensing process poses challenges such as costs and lack of #blockchain expertise, some companies withdrew their applications, especially those whose primary focus was not digital currency-related services. These withdrawals underscore the varying degrees of commitment among financial service providers to comply with the new regulatory regime.
The regulatory overhaul aims to safeguard investors and enhance oversight over digital asset activities. It closes loopholes that scammers previously exploited, allowing authorities to act swiftly against potential crypto scams.
South Africa has been a hotspot for digital currency scams, notably including Mirror Trading International (MTI) and Africrypt, which collectively defrauded billions from investors. The new regulations seek to prevent such incidents and ensure greater investor protection in the burgeoning digital asset space.
Source - coingeek.com