FSCA updates on licensing and supervision of crypto service providers

The Financial Sector Conduct Authority (FSCA) says it has been actively processing applications and monitoring compliance to ensure that the crypto asset sector operates within the boundaries of South African financial regulation.

- DIEKETSENG MALEKE

The FSCA says the licensing process for crypto asset service providers (CASPs) under the Financial Advisory and Intermediary Services (FAIS) Act, No. 37 of 2002, began on June 1, 2023.

“As of December 12, 2025, the FSCA had received 512 licence applications. Of these, 300 have been approved, 14 declined, and 121 voluntarily withdrawn after discussions with the regulator. The remainder are still under review,” it says.

According to the regulator, applications have been declined primarily due to shortcomings in operational ability and competency. The FSCA highlighted that some applicants failed to provide clear and comprehensive business plans, while others lacked the necessary expertise in crypto assets.

“Institutions that have voluntarily withdrawn their applications or that have had their applications declined by the FSCA are free to reapply in the future, on condition that they demonstrate full and proper compliance with the applicable licensing requirements. In the meantime, they may not undertake any CASP-related activities as defined under the FAIS Act,” the regulator says.