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Luno can now explore and cater to the South African market while adhering to local regulatory requirements.
Luno, a crypto exchange based in London, United Kingdom, has expanded its global presence by acquiring an operational license in South Africa. The license approved by the Financial Sector Conduct Authority (FSCA) allows the company to enhance its customer service in the region and legally provide its products and services in the local market.
Market Entry and Compliance
Sharing the news on X (formerly Twitter), the company said it is the first dedicated digital assets trading platform in the African nation to obtain its Financial Services Provider license.
Luno is the first dedicated Crypto Asset Service Provider in South Africa to be awarded its Financial Services Provider licence 🎉
Read the full story here:https://t.co/D9rhnRVd5S pic.twitter.com/xj2qh7Kxfo
— Luno (@LunoGlobal) April 11, 2024
Luno has been in the business of providing innovative solutions for trading crypto assets since its launch in 2013. The company operates in over 40 countries worldwide, spanning across Africa, Europe, and Southeast Asia.
However, with its latest licensing acquisition, Luno can now explore and cater to the South African market while adhering to local regulatory requirements.
In an official statement accompanying the social media post on X, the company said the license falls under South Africa’s Financial Advisory and Intermediary Services Act (FAIS). This law, established 2002 governs the provision of certain financial advisory and intermediary services to South Africans.
A Positive Step for South Africans
Commenting on the latest achievement, the company’s regional manager Christo de Wit described the license acquisition as a positive step for the people of South Africa and the digital assets space.
“This is a positive step for both the crypto-currency industry and South Africans. Compliance, safety and security for our customers has driven our growth from the beginning and will continue to be priorities as we expand our offering to introduce more features and products for financial institutions,” he said.
The London-based company was among the digital asset firms that submitted applications to the FSCA after the financial watchdog announced it was ready to accept licensing applications in June 2023.
The licensing regime follows the passage of legislation in South Africa to incorporate crypto assets within regulated financial activities in the country. Authorities set a deadline of November 30, 2023, for submitting these applications. Failure to meet this deadline will prompt the regulator to take “enforcement action,” which could result in the closure or imposition of fines on firms operating without a valid license beyond the deadline.
As of last year, the FSCA received approximately 20 applications from crypto companies seeking entry into the country.
