Crypto exchanges in South Africa will be required to operate with a license, the first time a country in Africa is instituting mandatory licenses for digital asset exchanges.
South Africa is already a major regional hub for the globe’s crypto firms targeting the African market, and the new rule will mean that even foreign crypto exchanges in the country will need to acquire licenses.
South Africa has been the home of multiple high-profile crypto scams that resulted in billions in customer losses, including a 2021 scam on the Africrypt platform that saw 3.6 billion of crypto disappear.
At the same time, South Africa is home to several Africa-focused crypto firms like Digital Currency Group-owned Luno, and the VALR crypto exchange, which is backed by Panera.
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