The South African Financial Conduct Authority (FSCA) will require local exchanges to obtain licenses before the end of the year. It is reported by Bloomberg.
The application process began a few weeks ago and will last until November 30th. The FSCA has already received about 20 applications from local cryptocurrency companies.
“The use of cryptocurrency products can cause serious harm to financial market participants. Therefore, it makes sense for us to introduce a regulatory framework,” said FSCA Commissioner Unati Kamlana.
If exchanges continue to operate without proper documentation after the deadline, they face fines or shutdown.
South Africa will be the first country on the continent to require digital asset exchanges to obtain licenses. According to Kamlan, time will show the effectiveness of the measures taken.
ForkLog previously reported that South Africa-based cryptocurrency exchange VALR has closed a $50 million funding round.
In August last year, the Machankura SMS service was launched in South Africa. It allows you to transfer bitcoin without access to the Internet.
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