The South African Financial Sector Conduct Authority (FSCA) has announced its intention to make licensing mandatory for all cryptocurrency exchanges operating within the country. As per a report shared on July 4th, these exchanges have until the end of the year to secure a license from the FSCA.

The FSCA's Commissioner, Unathi Kamlana, disclosed that the authority has already received approximately 20 license applications since it began accepting them. Kamlana expects a surge in applications before November 30th. He also clarified the consequences for entities that fail to comply with the licensing requirement after the deadline, stating that the FSCA will not hesitate to take "enforcement action," which could include imposing fines or mandating the closure of non-compliant exchanges.

This significant move makes South Africa the first African nation to require licensing for digital asset exchanges, joining a global trend of increasing regulations around cryptocurrency. The new regulation will affect several established crypto exchanges in South Africa, such as Luno, backed by Digital Currency Group, and global crypto exchange giants like Binance.

South Africa's decision aligns with a broader global shift towards implementing stricter regulation in the crypto sector. This shift was recently exemplified when the Monetary Authority of Singapore (MAS) ordered crypto service providers to place customer assets into a statutory trust by the end of the year for secure storage. South Africa's move further solidifies the growing global commitment to regulatory clarity in the rapidly evolving cryptocurrency industry.

In other related news, South African authorities have recently approved the Nigerian crypto exchange Roqqu to provide crypto-related services in the country.