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A CASP license, or Crypto Asset Service Provider license, is a regulatory authorization in South Africa for entities offering financial services related to crypto assets. It ensures these entities comply with legal standards, protecting consumers and fostering trust in the crypto sector.
What is a CASP License?
A CASP license, or Crypto Asset Service Provider license, is a regulatory authorization in South Africa for entities offering financial services related to crypto assets. It ensures these entities comply with legal standards, protecting consumers and fostering trust in the crypto sector.
Legal Framework and Definition
The license falls under the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act), with the FSCA declaring crypto assets as financial products in October 2022. Crypto assets are digital values not issued by a central bank, tradable electronically, using cryptography, and distributed ledger technology.
Requirements and Application Process
To obtain a CASP license, entities must demonstrate operational ability, competence, and integrity, meeting the FSCA’s fit and proper requirements. The application process started in June 2023, with a deadline of November 2023, and as of December 2024, 248 licenses were approved out of 420 applications.
Benefits and Market Access
Holding a CASP license allows legal operation in South Africa’s crypto market, a leading hub with over 12% of its population owning digital assets. It enhances credibility, providing access to this growing market and ensuring regulatory compliance.
