The Financial Sector Conduct Authority (FSCA) commenced the licensing process for crypto asset service providers (CASPs) under the Financial Advisory and Intermediary Services (FAIS) Act, No.37 of 2002 on 1 June 2023.
As of 10 December 2024, the FSCA received a total of 420 CASP licence applications, of which 248 have been approved and nine declined. A further 106 applications were voluntarily withdrawn by applicants following engagements with the FSCA on the appropriateness of their respective business and operating models, more than 200 applications are still in the process of being considered.
Reasons for the decline of CASP licence applications to date have included the failure of applicants to meet the appliable fit and proper requirements under the FAIS Act, particularly in respect of the following:
- Operational ability requirements, i.e., failure to provide clear and comprehensive business plans and business model descriptions outlining crypto assets activities and key business and operational frameworks to support such activities.
- Competency requirements, i.e., failure or inability to demonstrate the requisite knowledge and practical experience pertaining to crypto assets.
Th FSCA has furthermore extended the application of the Exemption Notice relating to CASPs and their key individuals (FAIS Notice 25 of 2023) from compliance with the regulatory examination requirements (REs) in terms of the Exemption Notice published on 11 May 2023, licensed CASPs and their key individuals were, for a period of 18 months, exempted from Part 4 of Chapter 3 of the Determination of Fit and Proper Requirements (Board Notice 194 of 2017) relating to REs.
Crypto Assets Providers need to apply for an FSP licence:
- If you are not already a licensed FSP, you will need to submit a full FSP licence application.
- If you are already operating as an FSP, you will need to submit an application to include crypto assets under your licence.
How to go about applying for an FSP licence?
Morningside Consulting has been assisting FSPs with FSP licence applications for many years. We are familiar with how the FSCA operates, their licensing processes and the documents they require. We always make the licensing process smoother and quicker by assisting with the application forms, compiling the supporting documents, submission of the application and helping clients to attend to all queries and issues raised by the FSCA timeously, comprehensively and adequately.
Need assistance with your FSP licence?
We can assist you with applying for an FSP licence. To find out more, get in touch with us by sending us a message or giving us a call.
