The Financial Sector Conduct Authority (FSCA) published an update on the licensing and supervision of crypto asset service providers (CASPs) under the Financial Advisory and Intermediary Services Act, 2002. As at 12 December 2025, the FSCA had received 512 CASP licence applications, approving 300 and declining 14, with 121 voluntarily withdrawn after engagement with the regulator and the balance still under consideration. Application declines to date have been linked to failures to meet fit and proper requirements, particularly shortcomings in operational ability (including unclear or incomplete business plans and business model descriptions) and competency (insufficient demonstrated knowledge and practical experience in crypto assets). Firms that withdrew or were declined may re-apply once they can demonstrate full compliance, but may not conduct CASP activities in the meantime. On enforcement, the FSCA has initiated 81 investigations into potential unlicensed CASP activity, closing 25 where no action was required and continuing to investigate 56 cases. Supervisory activity under the Financial Intelligence Centre Act, 2001 has included 10 inspections conducted between January and March 2025 focused on governance, risk management and compliance programmes, and business risk assessments, with a further 30 inspections planned for April 2025 to March 2026, of which 21 have been completed. The FSCA also established the Crypto Asset Supervisory Engagement Forum in August 2025 for regular engagement with the sector and to support alignment across regulatory agencies. The FSCA noted that the exemption from regulatory examinations for licensed CASPs and key individuals ended on 30 June 2025 following an extension, and warned that failure to meet the examination requirements may result in regulatory action, including suspension or withdrawal of licences under the FAIS Act. It also reiterated that its remit is limited to CASP licensing and supervision for defined financial services related to crypto assets, and that crypto assets are not recognised as legal tender, with the South African Reserve Bank not recognising them as currency.
South Africa Financial Sector Conduct Authority 2025-12-15
South Africa Financial Sector Conduct Authority reports 300 approved crypto asset service provider licences and 81 unlicensed provider investigations
The Financial Sector Conduct Authority (FSCA) updated on licensing and supervision of crypto asset service providers (CASPs) under the Financial Advisory and Intermediary Services Act, 2002, with 300 of 512 applications approved and 14 declined due to failures in meeting fit and proper requirements, particularly in operational ability and competency. The FSCA initiated 81 investigations into potential unlicensed CASP activity and established the Crypto Asset Supervisory Engagement Forum for sector engagement.