Crypto licence in South AfricaOverview
In October 2022 the FSCA declared crypto assets to be a financial product under the FAIS Act. Since the licensing window opened in June 2023, any person giving advice or rendering intermediary services in relation to crypto assets, or managing crypto assets on a discretionary basis, must be licensed as a financial services provider. The FSCA's mandate covers financial services linked to crypto assets; crypto assets are not legal tender, and the South African Reserve Bank does not recognise them as currency.
Once licensed, a CASP is an accountable institution under the Financial Intelligence Centre Act and must register with the FIC, maintain a risk management and compliance programme, conduct customer due diligence, screen against sanctions and file reports. FIC Directive 9 implements the travel rule, requiring originator and beneficiary information to accompany crypto transfers before or at the time of the transaction.
By 31 March 2026 the FSCA had received 533 CASP applications, approved 310, declined 17 and recorded 124 withdrawals. The most common reasons for failure were unclear business plans or operating frameworks and insufficient knowledge and practical experience of crypto assets. The exemption from qualification and examination requirements for key individuals of licensed CASPs expired on 30 June 2025 with no further extensions, so key individuals and representatives must now meet the full fit and proper standards.
Supervision is intensifying. The FSCA has opened more than 80 investigations into suspected unlicensed operators and carried out a programme of AML/CFT inspections, finding recurring gaps in business risk assessments, compliance programmes and travel rule evidence. A Crypto Asset Supervisory Engagement Forum was established in August 2025 to coordinate regulators and industry.
Key benefits
- Clear, established licensing route under a well-understood financial services statute
- Access to one of Africa's largest and most sophisticated retail and institutional markets
- Regulatory standing that supports banking and payments relationships
- Licence categories that can be scoped precisely to advice, intermediary or management activity
- Proven regulatory track record, with hundreds of CASPs licensed since 2023
- Can serve as a regional base for wider African expansion
Requirements
- South African legal entity applying for an FSP licence with the crypto assets product subcategory
- Fit and proper key individuals meeting honesty, competence, experience and qualification standards
- Regulatory examinations under Board Notice 194 for key individuals and representatives
- Operational ability, including adequate systems, staff and governance for the services offered
- Financial soundness requirements appropriate to the licence category
- Appointment of a compliance officer or compliance function
- Registration with the FIC and a risk management and compliance programme under section 42 FIC Act
- Travel rule compliance under FIC Directive 9 and sanctions screening
- Professional indemnity and fidelity cover where required for the category
Licence options & capital
Category I – advice
For firms that give advice on crypto assets to clients without executing transactions.
Category I – intermediary services
For exchanges, brokers, OTC desks and platforms that execute or arrange crypto transactions for clients.
Category II – discretionary management
For managers that make investment decisions over client crypto asset portfolios on a discretionary basis.
Combined licence
Advice, intermediary and management services under a single FSP licence where the business model requires it.
Step-by-step process
- 1
Scope the services
Define the activities, client types and products to select the correct categories and subcategories.
- 2
Appoint key individuals
Identify key individuals and representatives and confirm their qualifications, experience and exam status.
- 3
Prepare the application
Compile the FSP application, business plan, operational framework and financial soundness evidence.
- 4
FSCA assessment
Respond to FSCA queries on governance, experience and systems; weak business plans are a leading cause of declines.
- 5
FIC registration
On licensing, register with the FIC and finalise the risk management and compliance programme.
- 6
Ongoing compliance
Maintain fit and proper status, levies, reporting and travel rule controls, and prepare for inspection.
Typical documents
- FSP licence application forms for the applicant and key individuals
- Company registration documents and shareholder details
- Business plan and description of the operational framework
- CVs, qualifications and regulatory exam results of key individuals
- Fit and proper declarations and criminal record checks
- Financial statements or projections evidencing financial soundness
- Compliance monitoring plan and compliance officer appointment
- Risk management and compliance programme under the FIC Act
- Conflict of interest management policy and complaints procedure
How Legal Wealth helps
Legal Wealth helps crypto businesses enter South Africa with a licence application built around a credible operating model and experienced key individuals, the two areas where the FSCA most often finds weaknesses. We coordinate with local counsel and compliance practitioners, prepare business plans and AML programmes that reflect the real customer journey, and support FIC registration and travel rule implementation. We handle ownership and personal information with care and can link the licensed entity to the principals' international holding and succession arrangements.
Enquire with Legal WealthFrequently asked questions
Do all crypto businesses need an FSCA licence?
Any person giving advice, rendering intermediary services or providing discretionary management in relation to crypto assets for South African clients needs a FAIS licence. Purely technology services may fall outside, subject to analysis.
How many CASPs are licensed?
By 31 March 2026, the FSCA had approved 310 of 533 applications, with 17 declined and 124 withdrawn.
Do key individuals still benefit from the exam exemption?
No. The exemption for licensed CASPs and their key individuals expired on 30 June 2025, and the FSCA has said there will be no further extensions.
What is FIC Directive 9?
It is the Financial Intelligence Centre's travel rule directive, requiring originator and beneficiary information to be transmitted with crypto transfers before or when the transaction occurs.
What happens if we operate without a licence?
The FSCA has stated that unlicensed CASP activity will face enforcement, and it has dozens of investigations open into suspected unlicensed operators.
Last reviewed: 2026-10. Requirements, fees and timelines change. Information is general, reviewed on the date shown, and is not legal or tax advice.
