MILESTONE | Luno Becomes the First Dedicated Crypto Service to Receive the South African Financial Services Provider License

Luno, one of South Africa’s leading providers of crypto services, has received official authorization from the Financial Services Conduct Authority (FSCA) to operate as a financial services provider.

This achievement marks a significant milestone, as Luno is said to be the first dedicated crypto service to gain recognition under the recent classification of crypto assets as financial products by the Financial Advisory and Intermediary Services Act of 2002 (FAIS).

Christo de Wit, Luno’s Country Manager for South Africa, expressed enthusiasm for this development, highlighting Luno’s decade-long commitment to compliance, safety, and security in the crypto sector.

“As pioneers in the local crypto landscape with over ten years of experience, Luno is excited to be the inaugural licensed crypto service provider in the country,” said de Wit.

Luno’s licensing is viewed as a pivotal moment for South Africa’s crypto industry, providing a model for other crypto ventures seeking regulatory approval. It underscores the significance of adhering to regulations to foster a secure environment for users while promoting growth and innovation within the sector.

Besides Luno, the Financial Services Conduct Authority (FSCA) of South Africa is thought to have approved operating licences for more than 50 cryptocurrency businesses.

The decision follows the FSCA’s classification of crypto assets as financial products in 2022 requiring regulatory oversight. This aims to protect consumers from the inherent risks associated with the crypto market such as fraud and money laundering.

The regulation of these assets also grants explicit powers to the Reserve Bank of South Africa (RBSA) Financial Surveillance Department, enabling them to compel South African crypto asset trading platforms to report transactions involving crypto assets.

As reported by BitKE in February 2024, the country is already considering amendments to its Financial Intelligence Centre (FIC) Act to mandate reporting of all crypto transactions exceeding 49,999 South African Rand (~$2,650).