South African Crypto License Requirements: From Application to Compliance

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TL;DR,

 

 

• South Africa’s Financial Sector Conduct Authority (FSCA) has approved 248 Crypto Asset Service Provider (CASP) licenses as of December 2024, up from just 59 in March 2024.
• This has turned South Africa into one of the continent’s most tightly regulated crypto markets, with the South African crypto license now a key gatekeeper for any business offering crypto financial services locally.
• For both investors and businesses, understanding FSCA cryptocurrency regulation, licensing requirements, and crypto tax compliance is essential to operating safely and legally.

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South Africa’s Financial Sector Conduct Authority (FSCA) has approved 248 Crypto Asset Service Provider (CASP) licenses—up dramatically from 59 in March 2024. This makes South Africa one of the more tightly regulated crypto markets on the African continent, and the South African crypto license has become a key gatekeeper for anyone offering crypto financial services locally.

For anyone investing in crypto or operating a crypto business in South Africa, understanding this regime is now essential. It determines which platforms you can safely use, what protections you have, and what compliance obligations you face as a provider seeking a South African crypto license under FSCA cryptocurrency regulation.

This article explains why South Africa regulated crypto assets, how the FSCA framework works, and what it means in practice for businesses and investors, including how to approach crypto tax compliance and how to evaluate FSCA approved crypto exchanges.

Key Facts About the South African Crypto License in 2024

The FSCA’s decision to classify crypto as a financial product on October 19, 2022, was its running point. According to the regulator, the declaration came

“in the wake of mounting risk in the crypto asset environment due to an exponential increase in the provision of crypto assets in South Africa… and a significant increase in scams and fraudulent activities.”

High-profile cases proved the point. Mirror Trading International (MTI), later named the biggest cryptocurrency scam of 2020 by Chainalysis, was ultimately liquidated after an FSCA investigation. When Africrypt collapsed in June 2021, the FSCA couldn’t take regulatory action because crypto worked outside standard frameworks.

International pressure also played a role. The Financial Action Task Force (FATF) identified South Africa’s lack of Virtual Asset Service Provider regulation as a “major deficiency” in its 2019 review. Without remediation by October 2022, the country risked FATF grey-listing with “materially negative consequences.” The FSCA cryptocurrency regulation was a quick response to retain SA’s global standing and reputation.

How the FSCA Crypto Asset Framework Works

The FSCA defines a crypto asset as

 “A digital representation of value that is not issued by a central bank but is capable of being traded, transferred, or stored electronically… applies cryptographic techniques and uses distributed ledger technology.”

This generally bypasses creating new legislation. The “financial product” banner places cryptocurrency under the purview of the existing Financial Advisory and Intermediary Services Act (FAIS Act).

What Counts as a Crypto Asset and Who Needs a South African Crypto License?

What requires a South African crypto license: Any business that regularly provides advice, intermediary services, or investment management related to crypto assets must be licensed as a Financial Services Provider (FSP).

What’s exempt: Crypto miners, node operators performing network functions, and persons dealing only with NFTs don’t need FSCA licensing.

Important limitation: Despite comprehensive regulation, the South African Reserve Bank “does not currently recognize crypto assets as currency” or legal tender. Think of El Salvador and how it’s currently riding the Bitcoin hype.

FSCA-approved crypto exchanges now include major brands like Luno (FSP 53314) and VALR (FSP 53308), Binance’s local partner Fivewest, and diverse entities covering “advisory services, exchanges, payment gateways, crypto-to-fiat conversion, crypto asset arbitrage, tokenization, and wallet services.”

South African Crypto License Requirements for Businesses

For businesses, the licensing process demands rigorous preparation:

Fit and Proper Requirements

This typically refers to Board Notice 194 of 2017. It covers honesty, integrity, competence, and operational ability. According to the FSCA, applications are often declined or withdrawn because, “they failed to provide clear and comprehensive business plans” and “were unable to demonstrate the requisite knowledge and practical experience pertaining to crypto assets.”

FICA Registration

Since December 19, 2022, CASPs are classified as accountable institutions under the Financial Intelligence Centre Act. Registration via the goAML system is mandatory, with no grace period. Compliance includes client verification, ongoing due diligence, appointing a compliance officer, and implementing risk management programs.

Regulatory Examinations

When you think only educational institutes test you, you “might” think again.  FSCA-approved crypto exchanges and key individuals must pass applicable regulatory examinations within a set time frame (was on June 30, 2025). The FSCA has warned that “failure to comply may lead to regulatory action, including suspension or withdrawal of authorization.”

General Code of Conduct.

Licensed providers must render services “honestly, fairly, with due skill, care, and diligence,” make full disclosures about product risks, conduct needs analyses, and maintain detailed records.

Of 420 total applications received through December 2024, the FSCA approved 248 (59%), declined 9, and saw 106 voluntarily withdrawn. This often happened when their business model came into question. However, hope remains, as FSCA clarified that withdrawn or declined applicants “are free to reapply in the future, on condition that they demonstrate full and proper compliance.”

Here’s Your Takeaway from the Few to Gain a South African Crypto License

Verify before you invest. The FSCA maintains a public list of licensed providers at their official site.

Katherine Gibson, Deputy Commissioner at the FSCA, stated bluntly:

“If you want to participate in this market, make sure you do it with an entity that is licensed and authorized with the FSCA. If not, you run a big risk of being scammed.”

While licensing cannot guarantee that a platform will never fail, it makes it much harder for operators to disappear with client funds without regulatory consequences. You can report mis-selling to the FAIS Ombud. Any provider must make full disclosures and conduct needs analyses, and platforms face ongoing FSCA supervision.

Those under the regulator radar now face real consequences. Operating without a license violates the FAIS Act and constitutes a criminal offense carrying penalties of up to R10 million in fines or 10 years imprisonment, or both. There’s a high chance they might be a scam, so watch out.

Crypto tax compliance also matters. Since April 2018, the South African Revenue Service (SARS) has required that crypto gains and losses be declared as taxable income. With enhanced reporting by licensed platforms, crypto tax compliance is more critical than ever.

A Regulated Crypto Market Under Watchful Eyes

The FSCA established a dedicated investigation team and revealed 30 ongoing investigations into unauthorized crypto services as of July 2024. Public warnings have been issued against unlicensed operators like Afriinvest and MutualWealth, which promised unrealistic returns.

The regulator’s message is clear:

“Any institution or person found to be conducting such activities without authorization will be subject to regulatory action.”

Traditional financial institutions are also adapting. Discovery Bank integrated crypto trading through Luno, Absa partnered with Ripple on digital asset custody, and the SARB is working to enable crypto payment providers to access the National Payment System.

So if you are a startup, a business, or an SME eyeing the crypto ecosystem, getting a South African crypto license is no longer a choice. The 248 approvals demonstrate compliance is achievable, but the June 30, 2025, examination deadline is approaching.

For investors: verify provider licenses before investing. The FSCA’s public list is your primary defense against scams. Licensing brings meaningful protections—regulatory oversight, mandatory disclosures, dispute resolution—but doesn’t eliminate crypto’s inherent volatility.

South Africa’s crypto market no longer operates in regulatory shadows. The FSCA has drawn clear lines, approved diverse providers, and signaled serious enforcement intent. Whether you’re a business seeking to understand how to get a crypto license in South Africa or an investor evaluating FSCA-approved crypto exchanges, understanding this framework is now essential to participating safely and legally in the market.

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FAQs About the South African Crypto License

What is the South African crypto license?

The South African crypto license is an authorization issued under FSCA cryptocurrency regulation to Crypto Asset Service Providers (CASPs). It allows them to provide crypto‑related financial services—such as advice, brokerage, trading, exchange, or investment management—under the Financial Advisory and Intermediary Services Act (FAIS Act).

Who needs an FSCA crypto asset license in South Africa?

Any business that regularly provides crypto asset advice, intermediary services, or investment management to clients in South Africa must hold an FSCA license. This typically includes exchanges, trading platforms, brokers, custodial wallet providers, payment gateways, arbitrage platforms, and investment managers dealing in crypto assets under the South African crypto license regime.

Who is exempt from the South African crypto licensing regime?

Crypto miners and node operators that only perform network or validation functions do not require licensing from the FSCA. At present, persons dealing exclusively in non‑fungible tokens (NFTs), as interpreted under current FSCA cryptocurrency regulation, also fall outside the scope of the FSCA’s crypto asset license requirements.

Does a South African crypto license mean crypto is legal tender?

No. The South African Reserve Bank does not recognize crypto assets as currency or legal tender. The FSCA treats crypto as a regulated financial product, not as money. FSCA cryptocurrency regulation brings crypto activities into an existing financial services framework without changing the legal status of crypto as non‑legal‑tender.

How can I check if a crypto platform is licensed by the FSCA?

Go to the official FSCA website and open the public register of licensed Financial Services Providers (FSPs). Search by the platform’s name or FSP number and confirm that “Crypto Asset” appears under the list of financial products. This is how you distinguish FSCA approved crypto exchanges and service providers from unlicensed operators. Always cross‑check the listed contact details and web address to avoid impersonation or phishing.

How do I get a crypto license in South Africa?

If you are exploring how to get a crypto license in South Africa, you will need to apply to the FSCA as a Financial Services Provider and demonstrate that you meet “fit and proper” requirements, have appropriate systems and controls, comply with FICA and anti‑money‑laundering obligations, and that key individuals pass the relevant regulatory examinations. A clear, crypto‑specific business plan and strong risk management framework are essential for a successful South African crypto license application.

What are the consequences of operating without a South African crypto license?

Providing regulated crypto asset services without FSCA authorization is a criminal offense under the FAIS Act. Offenders can face fines of up to R10 million, imprisonment for up to 10 years, or both, in addition to regulatory enforcement action and public warnings. Operating outside FSCA cryptocurrency regulation also increases the risk of client complaints, reputational damage, and potential civil claims.

Does having an FSCA crypto license make an investment risk‑free?

No. An FSCA crypto license improves oversight, disclosure, and recourse but does not remove market risk. Investors remain exposed to crypto price volatility, business failures, and technology risks. Even with FSCA approved crypto exchanges and licensed platforms, there is no guarantee of profits or capital protection. Licensing is a governance and compliance signal, not an insurance policy against loss.

How does the South African crypto license affect tax obligations?

Licensing does not change the underlying tax treatment of crypto. Since April 2018, the South African Revenue Service (SARS) has required that crypto gains and losses be declared for tax purposes. Stronger reporting from licensed CASPs can make crypto tax compliance more visible, but it remains the taxpayer’s responsibility to track trades, calculate gains or losses, and file accurate returns.

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Disclaimer

This article is intended for general information purposes only and does not constitute legal, tax, financial, or investment advice. Regulatory frameworks for crypto assets, including FSCA cryptocurrency regulation, licensing requirements, and crypto tax compliance rules, can change, and their application depends on your specific circumstances. Before making any decisions about obtaining a South African crypto license, offering crypto‑related services, or investing through FSCA approved crypto exchanges and other platforms, you should obtain independent advice from a suitably qualified legal, compliance, or tax professional.

While every effort has been made to ensure the accuracy and timeliness of the information at the time of writing, no representation or warranty, express or implied, is given as to its completeness or reliability. Neither the author nor the publisher accepts any responsibility or liability for any loss or damage arising from reliance on the contents of this article, including decisions about how to get a crypto license in South Africa, choice of service providers, or approaches to crypto taxation.