Financial institutions that proactively embed governance, technology, and culture to meet evolving regulatory standards will not only avoid penalties but also strengthen credibility, build resilience, and drive long term value.
The report outlines the CASP sector’s vulnerabilities and provides guidance on how enhanced compliance and improved risk management can help to safeguard the industry.
As South Africa’s decentralised finance market gains traction, the FSCA is exploring ways to balance innovation with consumer protection.
Of the 420 CASP licence applications received, nine were declined, while 106 applications were voluntarily withdrawn.
As the regulatory framework develops, many questions remain – particularly around whether all tokens, from fungible coins to unique NFTs, will be regulated the same way.
With SARS tightening crypto enforcement, taxpayers should review their past filings, ensure accurate reporting of crypto profits, and consider the Voluntary Disclosure Programme to avoid severe penalties and interest.
Leveraging the Model Law on Cross-Border Insolvency, the liquidators co-ordinated with courts in the US, UK, and Australia, setting a precedent for future international crypto claims.
Among other measures, SARS says it is engaging with the FSCA about providing information on registered crypto asset service providers.
The Financial Intelligence Centre’s sector final risk assessment report for crypto asset service providers is set to be published in the new financial year.
The South African Reserve Bank’s inaugural Payments Study Report provides extensive insights into how the public perceives and uses various payment methods and instruments.
Not meeting the operational ability and competency requirements are the main reasons the Authority rejected licence applications.
The Centre’s analysis found the extensive use of shell companies to host and conceal fraudulent funds.
The Authority responds to media statements by entities claiming to be the first or only licensed institutions.
The inherent risk of money laundering and terrorist financing for CASPs in South Africa is high, the report says.
The FSCA also confirms that one FSP licence has been provisionally suspended as part of its investigation into advisers who may have referred clients to BHI Trust.
The FSCA says the study will bolster its grasp on crypto asset activities, enabling the Authority to fine-tune its oversight and licensing strategies.
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