Cryptocurrency exchange Luno has become one of the inaugural recipients of a license from South Africa’s Financial Services Conduct Authority (FSCA), enabling the platform to operate as a regulated financial services provider within the nation.
This pivotal development follows the FSCA’s recent classification of crypto assets as financial products under the Financial Advisory and Intermediary Services Act of 2002 (FAIS).
Christo de Wit, Luno’s South Africa country manager, expressed enthusiasm about the achievement, highlighting Luno’s decade-long expertise in the crypto market. He emphasized the significance of compliance, safety, and security for customers, affirming their continued commitment to prioritizing these aspects while expanding their offerings.
Established in 2013, Luno operates as both a cryptocurrency exchange and investment app, catering to users across Europe, Africa, Asia, and Australia.
The FSCA’s authorization of 59 digital asset firms underscores the regulatory landscape’s evolution. Despite over 300 South African crypto providers seeking permits, only a fraction have been approved, reinforcing the necessity for compliance within the industry.
The FSCA’s decision to regulate cryptocurrency assets in phases reflects a proactive approach to addressing potential risks such as consumer abuse, fraud, and market misconduct. This regulatory framework aims to protect financial consumers and mitigate the threats of money laundering and terrorism financing associated with the crypto market.
By requiring digital-asset exchanges to obtain licenses, the FSCA seeks to uphold regulatory standards and safeguard the interests of both investors and the broader financial ecosystem.