By Ebi Kesiena
South Africa’s Financial Sector Conduct Authority (FSCA) is investigating 30 crypto-related companies for unauthorized operations, marking a significant step as the country’s crypto regulatory landscape begins to take shape.
According to Mariblock, a leading source of news and insights about blockchain and digital assets in Africa, the FSCA has promised to publicize the findings of these investigations.
FSCA stated that this will serve as a warning to unauthorized operators in the sector, adding that the crackdown is part of South Africa’s efforts to tackle terrorist financing risks and addressing the Financial Action Task Force’s (FATF) concerns about money laundering through cryptocurrencies, which is rampant worldwide.
In their latest regulatory actions, the FSCA revealed the investigation into the 30 operations. The FSCA stated, “In the interest of protecting the public and in support of fairness in the industry, the FSCA will act decisively against unlawful crypto asset service providers (CASPs). There are currently 30 cases under investigation.”
Earlier this month, the FSCA issued 63 more licenses to compliant firms, bringing the total number of registered crypto and related service providers in the country to 138. The regulator issued the first set of licenses to operators during the first quarter of this year, including exchanges like Luno and Varl.
In October 2022, South Africa’s FSCA declared that crypto assets are recognized as financial assets and should be regulated. This declaration made it mandatory for crypto exchanges and other related services to apply for a Financial Service Provider license. The FSCA gave operators a grace period until November 30, 2023, to regularize their operations or face legal action.
Approximately 57% of the FATF’s grey-listed countries are African, including South Africa, Namibia, Nigeria, Mozambique, Kenya, and Tanzania. Burkina Faso, Cameroon, the Democratic Republic of Congo, Mali, Senegal, and South Sudan are also among the 12 African countries in the report. Meanwhile, authorities in Costa Rica recently arrested 36 individuals connected to a criminal gang involved in money laundering through cryptocurrency.
