Are Banks Ready For Crypto?

FSCA: PREVIOUSLY HOSTILE ATTITUDE SOFTENING AFTER LICENSING REGULATIONS

- Ciaran Ryan

The day when you can buy bitcoin (BTC) on your banking app may not be far off. Moneyweb canvassed SA banks to see if they're softening their previously hostile attitude to crypto, and it seems they are, particularly in light of licensing regulations introduced by the Financial Sector Conduct Authority in 2024.

The banks that responded to our questions say they are exploring various crypto initiatives, but are taking a cautious approach. None have taken the plunge just yet, but unofficially we are told at least one major bank is expected to launch a limited crypto offering in the near future. Others will likely follow in short order.

This would be a huge development for SA's crypto market, given their massive retail reach in a country where the five major banks have more than 50 million bank customers between them—some with multiple bank accounts.

The banks already have a solid reputation in digital custody and security, so offering digital crypto wallets would be a logical step, provided the risks are not too great.

SA banks were initially dismissive of crypto, which was seen as a poorly regulated gateway for fraudsters such as Mirror Trading International, now in liquidation after roping in more than 32,000 BTC from hundreds of thousands of investors with fake promises of up to 10% returns a month.

Paying attention With crypto regulations and licensing obligations now in place, the banks are paying attention.

"We are continually looking at broadening our investment offerings in line with our business strategy as well as responding to customer needs," says Bheki Mkhize, CEO of FNB Wealth and Investments.

"We will consider entering the crypto market if we believe that we can provide a simple, differentiated, easy-to-use and safe offering for our clients."

Nedbank says it is currently exploring crypto asset-related initiatives, in response to Moneyweb.