South Africa's crypto industry is taking a step towards legitimacy, but not everyone made the cut. The country's financial watchdog, the FSCA, has granted licenses to just 75 crypto service providers (CASPs) out of a staggering 374 applications.

This news comes after a flurry of self-proclaimed "first-ever" license claims from crypto businesses. To clear the air, the FSCA emphasized its focus on regulating financial services related to crypto assets, not the assets themselves. Bitcoin and its brethren aren't getting legal tender status just yet – the South African Reserve Bank has no plans to recognize them as currency.

Among the licensed institutions are prominent players like Luno, Altcoin Trader, and VALR. These firms can now offer crypto-related advice, intermediary services, and investment management under the watchful eye of the FSCA.

Binance Gets Shut Out

Conspicuously absent from the list is global giant Binance. Despite establishing a local presence in 2022, Binance seems to have fallen short of regulatory requirements. The exchange previously announced it would be scaling back South African services, likely in response to the FSCA's warnings about consumer risks.

For now, Binance remains unauthorized to offer financial services in South Africa. This regulatory uncertainty, coupled with the South African Revenue Service's hefty new crypto taxes (up to 45%), paints a complex picture for crypto investors in the country.

The FSCA promises to keep the public updated as more applications are processed. This selective licensing process suggests South Africa is taking a cautious approach to crypto regulation, favoring established players with a strong focus on client protection.