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EA Capital, a financial service provider focusing on
blockchain technology in South Africa, has obtained a regulatory license in the
region. The company received a Category I license as a Crypto Asset Service
Provider from the Financial Sector Conduct Authority.
Bridging Traditional Finance and Digital Assets
Since 2022, EA Capital has reportedly operated as a
regulated Financial Services Provider and an Accountable Institution under the
Financial Intelligence Centre.
According to the company’s LinkedIn post, the
licensing reflects South Africa‘s efforts to regulate the digital asset space
with the aim of protecting investors and consumers while enhancing the sector’s
credibility. The company now seeks to integrate established banking practices
with its digital solutions.
“EA Capital provides a unique blend of an
established traditional international banking team with a long-term
market-leading track record, experienced, and expert crypto/digital asset &
blockchain technology team with complementary skills and experience,” Ryan
Aufrichtig, the company’s Founder and CEO, commented.
“Our CASP license underscores EA Capital ( Pty ) Ltd’s culture, experience, expertise, and understanding in the governance and management of the full “front-to-back” business within a highly
regulated TradFi environment into the crypto/digital space/age.”
Plans to License Crypto Firms
Early this year, South Africa announced plans to license an estimated 60 crypto firms. This step by the Financial Sector Conduct
Authority highlighted the nation’s proactive steps in regulating the digital
asset space. South Africa’s regulator revealed that more than 300
crypto-asset providers were seeking licenses in the region. The deadline for
application for the approvals was scheduled for November 30.
The FSCA warned that firms that do not register by November risk facing enforcement actions, including fines or
business closure. The regulator opted to utilize the existing Financial
Advisory and Intermediary Services Act instead of developing a standalone
regulatory framework for crypto operators.
In addition to the digital asset space, CFI, an online
trading provider, expanded its services into South Africa by obtaining a
Category 1 Financial Service Provider license from the Financial Sector Conduct
Authority in May. The company welcomed the approval as a highlight of its
compliance with regulatory standards in the region.
This article was written by Jared Kirui at www.financemagnates.com.
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