TL;DR,

• Kotani Pay successfully obtained a Crypto Asset Service Provider (CASP) license from South Africa’s FSCA, joining over 248 approved applications since June 2023 to legally offer on-ramp and off-ramp services to businesses and traders.
• South Africa’s CASP licensing framework offers regulatory clarity in a market where 12% of citizens interact with digital assets, providing credibility and consumer protection.
• The fintech company provides three core services including API integration for fiat-to-crypto conversion, stablecoin settlement for cross-border payments, and SMS wallet technology.

Kotani Pay has successfully obtained a Crypto Asset Service Provider (CASP) license from South Africa’s The Financial Sector Conduct Authority (FSCA). The leading fintech company has gained the green light to offer its on-ramp and off-ramp services to South African businesses and traders. The Fintech company demonstrated its resilience in aligning with Africa’s regulatory bodies via its existing SOC II compliance and registration with the Financial Intelligence Centre.

Kotani Pay Obtains a CASP License in South Africa

Kotani Pay’s main focus is empowering Web businesses with easily accessible payment rails while also offering fiat conversion rates. With regulation quickly catching up with many African regions, the fintech company made haste in securing the green light with Africa’s leading ecosystem.

Felix Macharia, CEO of Kotani Pay, commented:

“This is an exciting time for the Kotani Pay team. Receiving the CASP license is a pivotal milestone for us, underscoring our commitment to compliance, transparency, and innovation in the crypto industry. We believe that regulation is essential in building trust and confidence in digital finance, and we are proud to lead the way by setting a high standard for our clients.”

The Product Suite: Three Pillars Powering Africa’s Web3 Access

Kotani Pay’s main selling points are its on-ramp and off-ramp services. Most businesses often have the desire to venture into digital assets; however, for most local SMEs, traditional FX conversion prices are expensive. The fintech platforms come in to solve this dilemma via their services, which include:

• The API: Embedding Fiat-to-Crypto Services: An open-source API lets businesses add on-ramp and off-ramp services directly to their apps and websites using its powerful system. This helps people in Africa pay with their own money.

• Stablecoin Settlement: Streamlining Cross-Border Payments: An Over-the-Counter (OTC) service that lets businesses that need to settle in USD use better alternatives like USDT and USDC. This helps them settle payments quickly, which makes things run more smoothly and lowers the risk of currency changes.

• The SMS Wallet: Blockchain Access for the Feature-Phone User: This lets people use a blockchain wallet that works without being connected to the internet. Kotani’s middleware technology lets users connect to the blockchain and get to their money. The interface is an abridge enabling seamless payouts to Mobile wallets, bridging the gap between physical cash and digital assets.

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South Africa’s CASP License: Africa’s First Frontier for Regulatory Clarity

Over the past decade, cryptocurrency has showcased its true value within Africa: utility over value. Regions like Nigeria, Kenya and South Africa have witnessed an immense surge in adoption. Local startups have cropped up providing utility, a means to use digital assets to offer cheaper alternatives.

Kotani Team/Photo: KotaniPay

The result is straightforward, with more developers and users growing by the year.

Unfortunately, standard laws don’t apply to the digital assets, creating a need to reinvent new frameworks, ensuring security while fostering adoption. Designing a regulatory framework is not as simple; however, Africa has few success stories, one of which is South Africa’s crypto regulation.

The FSCA’s introduction of the CASP license was a redefining moment for the nation.

South Africa’s crypto regulation officially recognizes cryptocurrency as a financial asset, defining it as a digital representation of value not issued by a central bank.

Why CASP Licensing Matters

The licensing process for CASPs commenced on June 1 2023, with over 248 approved applications. This is by no means a sideline activity but a necessary stamp of approval for most exchanges. The core aspect of the CASP License is mainly market access and credibility. Over 12% of South African directly interact with digital assets, making it a lucrative market for any local business.

The license is a green stamp or approval enabling entities to operate within the market legally. Exchanges, wallets, payment systems and advisory services gain enhanced credibility as service providers, fostering a key element in the market: Trust.

South Africa is all too familiar with “crypto scams”; projects vanishing without a trace, leaving investors asking questions with no clear answer. The CASP License protects consumers by requiring each participant to provide comprehensive and clear business plans and descriptions of their crypto asset activities, outlining business and operational frameworks.

A clear win for Kotani Pay given its long history of successes.

Kotani Pay at the Centre of African Cross-Border Commerce

Aligning with South Africa’s crypto regulations only plays a part in Kotani’s grand scheme: bridging the digital assets to real-world applications. Web3 platforms have recently surged, with many providing localised solutions. The fintech company is among these contenders offering businesses a means to tap into the lucrative market of stablecoins and cryptocurrency.

RELATED: SA Slams the Door on Crypto Loopholes: Cross-Border Rules Drop in 2025!

Cross-border payments are a norm for most businesses; however, FX exchange and conversion rates aren’t too friendly. Kotani’s APIs and services step in to help companies in different countries work together easily without having to worry about high exchange rates. Additionally, stablecoins offer an added advantage to hedge against volatility; a story all too common in most local fiat currencies. Broader markets, faster, safer and cheaper transfers and a means to hedge against inflation. All these factors have fueled Kotani’s appeal to many companies. Additionally, Web3 cuts across different fields, enabling other industries to benefit from