South Africa’s Financial Sector Conduct Authority (FSCA) granted the CASP license, making Yellow Card an authorized financial services provider within the country.
While the license primarily covers crypto assets, it can be expanded to include financial products such as stocks and tokenized securities, the company revealed.
Operating in 20 African countries, Yellow Card allows users to leverage stablecoins for seamless cross-border transactions. Since its inception in 2016, the company claims to have facilitated over $3 billion in transactions.
“We are excited to build on our licensing in South Africa and explore new opportunities not only in South Africa and the SADC region but across the continent,” Yellow Card stated.
The licensing of crypto service providers in South Africa began in June 2023, following the FSCA’s designation of crypto assets as financial products in October 2022.
This regulatory framework has enhanced oversight of exchanges, wallets, and payment gateways while enabling the government to tax crypto earnings and mitigate risks like money laundering and terrorist financing.
Between June 2023 and June 2024, the South African crypto industry processed $26 billion in transactions, underscoring the growing importance of a well-regulated ecosystem.
However, the FSCA’s jurisdiction is limited to licensing financial services involving crypto assets and does not equate to recognizing them as legal tender. The South African Reserve Bank (SARB) also does not recognize crypto assets as currency.
Yellow Card’s success in South Africa aligns with its broader ambitions across the continent. The company has initiated discussions with Nigeria’s Securities and Exchange Commission (SEC) to obtain a license under the Accelerated Regulatory Incubation Programme (ARIP).
“We submitted our ARIP application to the SEC several months ago and are awaiting their approval in principle,” the company confirmed.
South Africa’s journey toward crypto regulation began in 2018 when the SARB, FSCA, and other key institutions established the Crypto Assets Regulatory Working Group. The FSCA’s decision to regulate crypto assets as financial products in 2022 paved the way for licensing, enabling companies like Yellow Card to operate within a structured framework.
With this new license, Yellow Card is poised to play a crucial role in advancing Africa’s crypto ecosystem while supporting financial inclusion and innovation across the continent.