South African Companies Apply for Crypto Licensing – Is this good news for live casino?

128 crypto firms apply for licensing in South Africa.. New rules aim to protect consumers. What will regulation mean for live casino players? (Photo by Nothing Ahead Pexels)

The Financial Sector Conduct Authority (FSCA) in South Africa is going over applications from cryptocurrency companies looking to operate legitimately.

They received 128 applications and have already made decisions on 36 of them on 12 December. More are slated for approval in February and March.

This is great news for platforms on the Livecasinocentral live casino SA page because it will encourage more cryptocurrency players to sign up and play.

The regulator is looking closely at how these companies verify customers, protect data, handle risks and complaints. They want to make sure approved companies follow good practices around protecting consumers and participating fairly in the market.

According to news sources in South Africa, the FSCA has already discussed 36 applications in a meeting in December and will discuss a further 22  in February and the final 14 applications in March.

20 Applications Already Turned Down

About 20 applications got turned down for not having strong enough policies and procedures in place. That shows the Conduct Authority is being selective and wants companies that can add value to the crypto space. Survey Shows Interest Despite Modest Size One of the Authority’s market studies found that 60% of the cryptocurrency traded in South Africa lacks backing by real-world assets. A lot of it is stablecoins and non-fungible tokens. The study also showed most companies are small – average earnings are between $50,000 to $3 million annually.

Yet crypto trading volumes hit record highs in November 2022, over $400 million worth. All companies operating crypto wallet, custodial, or exchange services had until the new year to get licensed, or they could face penalties or getting shut down. The licensing push aims to make the crypto market safer as more South Africans get into digital coins and tokens.

Originally South Africa acknowledged crypto in 2022 as per the Livecasinocentral new story published on 9 October 2022 – ‘South African FAIS Act Acknowledges Crypto‘. As for the intention for the FAIS to allow application for crypto companies to operate in the country, this came later in 2022.

South Africa Set Crypto Application Licensing Deadline in July 2023

Cryptocurrency exchanges in South Africa were given until 30 November 2023 to register with the country’s Financial Sector Conduct Authority (FSCA). Companies that do not comply risk facing enforcement actions like fines or closure. The FSCA aims to curb fraud and protect consumers using crypto products, though the Commissioner said they will refine the rules if needed. Major exchanges like Binance and Coinbase operating in the region could be impacted.

Previous crypto fraud cases may have motivated South Africa’s strict new licensing requirement. Last year a exchange allegedly lost $3.6 billion of bitcoin to hackers. Another trading platform was sued for running a massive fraudulent scheme. So due to risks posed to investors, South Africa decided to collaborate across regulators to oversee cryptocurrencies to protect citizens from crypto firms acting irresponsibly. Similarly, last year the UK recently passed legislation bringing stablecoins under payment rules and giving more oversight powers to regulators.

South African Government is Serious About Crypto Investor Protection

The licensing deadline showed South Africa’s intent to reduce harm from crypto by holding exchanges accountable. Fines or shutdowns await those disregarding the new regulations for those companies whose application are approved.

Is licensing South African crypto companies good news for Live Casino players? The answer has to be a responding yes. Regulation means your crypto investments and exchanges processing your crypto now operate under financial laws in South Africa. For more information, read our live casinos and crypto guide. It gives you the ins and outs of playing live casino games using cryptocurrency.