Luno, a London-based crypto exchange, has increased its reach by obtaining a functioning permit in South Africa from the Financial Sector Conduct Authority (FSCA). This authorization enables Luno to improve client support in the area and lawfully offer its goods and services within the local market.
Market Entry and Compliance
On X, formerly known as Twitter, the corporation announced that they are the initial digital asset trading platform in the African country to secure a Financial Services Provider license.
Luno becomes the first cryptocurrency service provider in South Africa to receive a Financial Services License, marking an important milestone 🥳.
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— Luno (@LunoGlobal) April 11, 2024
Since its debut in 2013, Luno has been offering advanced methods for buying and selling cryptocurrencies. With a presence in more than 40 nations including Africa, Europe, and Southeastern Asia, the company extends its reach globally.
With their newest license purchase, Luno now has the ability to enter and serve the South African market while complying with local regulations.
The company announced through a formal statement along with their social media post about X, that this service is subject to South Africa’s Financial Advisory and Intermediary Services Act (FAIS) from 2002. This legislation oversees the offering of specific financial advisory and intermediary services in South Africa.
A Positive Step for South Africans
Regarding the recent accomplishment, South Africa’s regional manager at the company, Christo de Wit, expressed optimism, viewing the license acquisition as a beneficial move for the South African populace and the digital assets sector.
“This move benefits the crypto-currency sector and South Africans alike. Our commitment to adhering to regulations, ensuring safety, and prioritizing security for our customers has fueled our growth since the start. As we add more services and products for financial institutions, these priorities will remain our top priority.”
A London-based digital asset company was one of many in the industry who applied for licenses with the Financial Sector Conduct Authority (FSCA) once they made the announcement that they would begin accepting applications in June 2023.
In South Africa, the regulatory framework for crypto assets has been updated to bring them under the purview of authorized financial transactions following the enactment of new legislation. The authorities have established a cut-off date of November 30, 2023, for companies dealing with crypto assets to submit their applications for licensing. If businesses do not comply with this requirement by the deadline, they may face regulatory action, which could include penalties such as fines or closure.
Last year, around 20 crypto companies applied to the Financial Sector Conduct Authority (FSCA) for permission to operate in South Africa.
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2024-04-11 16:03