South Africa’s Financial Sector Conduct Authority (FSCA) says it received 128 applications for crypto asset service provider licences as of November 30 2023.

In a presentation providing an update on the licensing of cryptocurrency services in South Africa, the Financial Sector Conduct Authority (FSCA) stated:

• 93 applications were received as of October 31 2023
• 19 were withdrawn due to lack of experience and appropriate operational policies and procedures

The FSCA provided the following timelines for the 74 licence applications that remain under consideration:

• 36 completed assessments to be presented at the December 22 2023 Licensing Executive Committee meeting
• 22 applications pending for various reasons to be presented at the February 13 2024 Licensing Executive Committee meeting
• 14 applications with analysis yet to begin to be presented at the March 12 2024 Licensing Executive Committee meeting
• 2 undisclosed

Moreover, FSCA, which in July 2023 warned all service providers that they risked closure without licenses, conducted a survey that was responded to by 47 applicants revealing the composition of the crypto assets market:

FSCA crypto market survey 2023 — Financial services offered

The FSCA reported that it considered various factors in its analysis of each potential licensee. These factors include the significance of market services, whether they offer multiple services, and whether they provide market support services such as custodial and payment rails.

FSCA crypto market survey 2023 — Summary of business models

The evaluation process conducted by the FSCA also involved assessing applicants’ operational policies and procedures. This encompassed aspects such as:

• Know-Your-Customer onboarding (referred to as ‘FICA’ in South Africa)
• Data protection measures
• Cyber risk management
• Conflict of interest management
• Complaints handling
• Credit counterparty risk management

South African fintech, PayCorp, has unveiled CryptoExpress, an app designed to simplify the conversion of cryptocurrencies to cash for South Africans.

The CryptoExpress app seamlessly integrates with users’ cryptocurrency wallets, allowing them to easily convert their digital assets into cash at over 3,000 crypto-enabled Cash Express ATMs nationwide. These ATMs are operated by Paycorp’s subsidiary, ATM Solutions.

Accessible on both iOS and Android platforms, CryptoExpress incorporates cutting-edge encryption technology and robust multi-layer security measures, ensuring the utmost safety for users. The app also comes equipped with an ATM locator feature, aiding users in effortlessly identifying the nearest Cash Express ATM.

To initiate a cash withdrawal:

• Users can convert their cryptocurrency from any crypto wallet using the app
• Following this, they authorize the transaction within their crypto wallet and obtain a withdrawal voucher PIN generated by CryptoExpress
• At a Cash Express ATM, users then utilize this PIN along with their mobile number to receive their cash in Rand denomination

As of now, CryptoExpress supports cash outs for:

• Bitcoin
• Ethereum
• USD Coin
• Tether

The app incorporates real-time on-chain transaction hedging for cryptocurrency sales, ensuring customers a fixed exchange rate throughout the transaction. This feature provides stability, regardless of the fluctuating rates on crypto exchanges.

Steven Kark, Group Chief Executive Officer of PayCorp says:

“PayCorp’s goal is to connect more people to their money, and through launching CryptoExpress we are doing just that. Our ATMs are located at formal and informal retailers, forecourts and hospitality locations in both urban and rural areas, making them easily accessible for the majority of South Africans.”

Referring to recent data from Statista.com, which indicated that 16.7% of South Africans, equivalent to 10.24 million individuals, were cryptocurrency holders, Kark emphasized the statistics portal’s forecasted growth to 15 million by 2027.

“Paycorp remains committed to advancing financial inclusion in South Africa. The introduction of the CryptoExpress app, facilitating cardless withdrawals from crypto wallets at Cash Express ATMs, coupled with our Smart ATM rollout, which combines drop safe and ATM functions, underscores this unwavering commitment.”

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