South Africa has successfully licensed 138 Crypto Asset Service Providers (CASPs). This includes businesses across advisory services, exchanges, payment gateways, crypto-to-crypto and crypto-to-fiat conversions, crypto asset arbitrage, tokenization, index-based products, and wallet services.

Rejected or withdrawn applications are encouraged to reapply once they meet the requirements, which include demonstrating operational ability through clear business plans and operational frameworks, and the required knowledge and practical experience in crypto assets.

Although the South African Financial Sector Conduct Authority (FSCA) authorizes and supervises CASPs for financial services related to crypto assets under the FAIS Act, it does not recognize crypto assets as legal tender. The South African Reserve Bank also does not recognize crypto assets as currency, defining them instead as digital representations of value that utilize cryptographic techniques and distributed ledger technology.

This licensing of new crypto exchanges in South Africa reflects the country's proactive approach to embracing and regulating the cryptocurrency market. By providing clear guidelines and licensing, South Africa aims to create a safer and more transparent crypto trading and investment environment. This is in contrast to other regulatory environments worldwide, where the approach to cryptocurrency regulation is more restrictive or less defined.

This licensing should serve as a model for other countries looking to balance the benefits of cryptocurrency innovation with the need for regulation. It shows a willingness to support the crypto industry while ensuring that it operates within a legal framework that protects investors and the financial system's integrity.