South Africa is set to become one of the first countries in Africa to mandate licenses for crypto exchanges.

South Africa aims to grant permits to about 60 digital asset platforms by the end of this month, ensuring their compliance with regulatory standards. In an interview with Bloomberg, the Commission of the Financial Sector Conduct Authority (FSCA) disclosed this development today.

The FSCA has set a deadline of November 30 for exchanges to submit their licensing applications. Failure to adhere to this requirement may lead to regulatory penalties. The call for applications attracted over 300 crypto-asset providers, indicating significant interest in obtaining official approval.

In a strategic maneuver, the FSCA has opted to integrate crypto exchanges into the framework of the existing Financial Advisory and Intermediary Services (FAIS) Act. This move entails subjecting crypto platforms to scrutiny based on transparency, ethical conduct, competency, and operational capacity, aligning with the FAIS Act's rigorous 'fit-and-proper' criteria.

This regulatory milestone comes amid a notable surge in Bitcoin's value, reaching a historic pinnacle of $73,664. Bitcoin's ascent underscores a trend of escalating investment and interest in cryptocurrencies, underscored further by unprecedented investments in spot Bitcoin ETFs.

With the implementation of the new regulatory framework, consumers engaging with crypto exchanges will benefit from heightened protections and avenues for recourse that were previously unavailable. The FSCA's authority to enforce the standards outlined in the FAIS Act promises a safer environment for both operators and consumers within the digital asset sphere.