TL:DR,

• South Africa issued 75 crypto licences under FAIS Act: 71 Category I, 33 Category II, 3 Category IIA, with notable companies like Revix approved but Binance absent.
• Revix is among the CASPs that received their crypto licences under its incorporated name, RVX SA Capital (pty) Limited.
• We expect South Africa to be a hotbed of innovation and developments in the cryptocurrency space shortly.

South Africa recently announced the first CASP regulations under its Financial Advisory and Intermediary Services (FAIS Act), a key piece to developing the region’s crypto licences.

Initial reports indicated that around 60 crypto licences would be issued, but the final number was 75. The announcement includes some exciting highlights, including the type of licences, notable names on the list, and some notable absences.

If the numbers and spread amongst the licences are indicative, the future of crypto in South Africa is bright.

Comprehensive SA Categories for new Crypto Licences

The latest digital asset regulation will fall under the following categories.

Category I: Foundation Services

The first category of the CASP regulations covers both advice and intermediary services. In simple terms, it enables holders to provide services such as exchanges, custody, and other intermediary services for financial assets. Of the 75 crypto licences issued, 71 were category I.

Category II: Advanced Investment Services

According to the FAIS Act, a category II financial service provider allows the holder to conduct investment management services. It’s important to note that a provider can hold more than one licence category under the framework.

So, a provider can be licensed under both categories under the same law. Of the 75 licensed entities, 33 were approved for category II. In cryptocurrency, this presumably allows additional investment services such as bundled products, Exchange-Traded Funds (ETFs), and staking services. The benefits of using a regulated exchange become apparent with the framework meshing protection measures and institutional requirements.

RELATED: South African Fintech Startups to Watch in 2025: Cutting-Edge Payment Solutions for SMEs and Beyond

Category IIA: Alternative Investment Solutions

This licence category is specific to the operation of hedge funds or alternative investment funds. These are high-risk pooled funds, generally with a qualifying threshold for investors.

Due to the nature of their investments, hedge funds are typically considered separate from regular investment services. This licence category only applies to three recipients.

Key Highlights from the Licensed Landscape

Now that we are familiar with the licence categories, we can examine some of the highlights from the 75 crypto licences that were awarded.

A Diverse and Robust Market Ecosystem

The diverse array of crypto licences awarded is a reassuring sign of the market’s stability and potential. It includes well-known names in the crypto asset provider space, such as Luno and Altcoin Trader, and traditional finance (Trad-Fi) entities, such as Momentum, venturing into crypto.

This variety paves the way for various products and approaches, fostering inclusivity and expansion opportunities.

FSCA has noted various statements in the media by certain institutions indicating they are the first or only institutions currently licensed as crypto asset service providers (CASPs) under the Financial Advisory and Intermediary Services (FAIS).[Photo/TechPoint]

SA’s commitment to foster each aspect is vividly displayed with the CASP regulations offering a diverse array of crypto licences. The region’s powerhouse offering exchange-traded funds like Luno, Altcoin Trader and Momentum can now fully venture into crypto without worry.

Diversity is one of the main benefits of using a regulated exchange where competitive fees, better services and innovative products cull the weak from the strong.

Evolution of Financial Products

The licensing in multiple categories also suggests we will soon see a new era of financial products in South Africa.

Thus far, much of the activity in the cryptocurrency space in Africa has come in the form of trading platforms. With the licensing, including advisory, investment services, and hedge funds, new and exciting products are on the horizon.

The Notable Absence of Binance

While Binance is among Africa’s leading gateways for crypto adoption, its absence from the list of licensed companies raised questions regarding its stance. South Africa is among the continent’s most prominent crypto-regions, hence many wonder why Binance went silent.

See the complete list of 75 crypto licences.

What This Means for the Future of Crypto in South Africa

While it is just a list of 75 entities and the licence category they were awarded, it should still be considered a big win for South Africa’s approach to digital asset regulation.

The days ahead will have more information as the CASPs start rolling out products and programs for crypto enthusiasts. It is perhaps fortunate that this announcement comes at a time when the cryptocurrency market as a whole is trading at new highs after enduring a particularly crypto winter in 2023.

RELATED: How South Africans Are Spending $112k Monthly Via Crypto Payments

With cryptocurrency currently in favour and the headwinds pointing towards the market going even higher, CASPs have the perfect conditions to introduce new products to the market that will find popularity with South Africans.

It is important to note that while crypto has been on the rise in general, the South African Rand has gone in the opposite direction against major currencies. We covered Revix, a company that offered currency hedging to South Africans before the decision on regulation.

The company is among the CASPs that received their crypto licences under its incorporated name, RVX SA Capital (pty) Limited. We are sure to see others offering the service or something similar.

Like the global crypto landscape, South Africa has also witnessed its share of illicit activities associated with cryptocurrency. Scams and frauds have been perpetrated through or in the name of cryptocurrency.

The recent resurgence of the infamous MMM Ponzi scheme as MMM Krypto is a stark reminder. Despite the introduction of crypto licences, promoting consumer education still remains the most prevalent way South Africa can empower its citizens while fostering security.