Cryptocurrency exchange Luno is one of the pioneering companies licensed by the Financial Sector Conduct Authority (FSCA) in South Africa to operate as a domestic financial services provider. Luno receiving this license marks a significant milestone, not only for Luno itself but also for the cryptocurrency industry in South Africa.
In the announcement, Luno stated that they have been granted a financial services provider license by the FSCA, following the agency’s declaration that cryptocurrencies are a financial product within the scope of the Financial Advisory and Intermediary Services (FAIS) Act of 2002.
Christo de Wit, Luno’s National Director in South Africa, emphasized:
As a domestic pioneer with over 10 years of experience in the cryptocurrency market, Luno is delighted to become the first licensed cryptocurrency asset service provider here. This is a positive step, not only for us but also for the cryptocurrency industry and the people of South Africa in general.
De Wit further added that compliance with the law and ensuring safety and security for customers has always been Luno’s top priority since its inception. This commitment has driven the company’s growth and will continue to be a commitment as Luno expands its operations, introducing new features and products for financial institutions.
Luno is the first dedicated Crypto Asset Service Provider in South Africa to be awarded its Financial Services Provider licence 🎉
Read the full story here:https://t.co/D9rhnRVd5S pic.twitter.com/xj2qh7Kxfo
— Luno (@LunoGlobal) April 11, 2024
Launched in 2013, Luno is now present in over 40 countries across Europe, Africa, Asia, and Australia, becoming a reputable cryptocurrency exchange with cryptocurrency investment applications.
Regarding FSCA’s framework for managing cryptocurrency assets, in 2021, the agency announced its intention to bring cryptocurrency assets under its supervision in a “structured and phased manner.” This move was explained due to concerns about increasing cases of abuse, fraud, and misconduct in the cryptocurrency market, not only internationally but also in South Africa.
Related: Nigeria Government Collaborates with Interpol to Extradite Binance Director
FSCA approves Luno and 58 other digital asset exchanges
In March of this year, the FSCA approved 59 operating licenses for digital asset exchanges, amidst over 300 providers in South Africa applying for licenses. As per regulations, digital asset exchanges must have a legal license to operate domestically.
Previously, in 2022, FSCA declared cryptocurrency assets as financial products, requiring tight regulation to protect investors and prevent money laundering and terrorist financing. The agency set a final deadline for exchanges to apply for licenses by November 30, failure to comply would result in enforcement.
The licensing of Luno and 58 other digital asset companies by the FSCA demonstrates the South African government’s efforts to more tightly manage and control cryptocurrency activities to protect investors’ rights and prevent risks and illegal activities.
In 2021, the FSCA issued a statement emphasizing that cryptocurrency assets would be brought into South Africa’s regulatory purview but would be done “in a structured and phased manner.”
