The Financial Sector Conduct Authority (FSCA), South Africa's financial watchdog, has given the green light to 59 cryptocurrency platforms to offer services to locals.

Felicity Mabaso, an executive at FSCA, shared during a finance conference that they've received a whopping 355 license applications, with 262 still in the queue.

To keep up with the surge, FSCA set a deadline of November 30 for exchanges and crypto platforms to apply for licenses, or face regulatory actions.

Commissioner Unathi Kamlana emphasized that due to the high volume, they're processing applications gradually.

FSCA is leveraging existing regulations like the Financial Advisory and Intermediary Services Act (FAIS) to regulate the crypto industry, ensuring user protection and proper enforcement.

While the specifics of authorized companies remain private, it's expected that licensed entities will include custody service providers and crypto exchanges, with payment processors and brokerage firms also under regulatory oversight.

South Africa has been contemplating new laws for the crypto sector since 2021, aiming for a phased and organized approach to regulation, supported by the categorization of cryptocurrencies as financial assets rather than currency by the South African Reserve Bank.

As crypto usage grows, South Africa is becoming more proactive in its approach. A significant portion of South Africans have either invested in or expressed interest in cryptocurrencies, with the country ranking third globally in cryptocurrency ownership in 2020.

Businesses in South Africa are also embracing cryptocurrencies, with payment options like "Pay with Crypto" and services like CryptoExpress, enabling users to withdraw crypto in South African Rands from over 3,000 ATMs.

Luno, a crypto exchange, recently secured a license from the FSCA, allowing it to operate as a financial services provider in the country.